Banca Transilvania 2018 Preliminary Results

In 2018, Banca Transilvania observed a 45.4% YoY increase in net interest income, 24.1% increase in net fee and commission income and a 1.2% increase in net income.

We are bringing you some key takes from Banca Transilvania’s 2018 preliminary report. According to it, Banca Transilvania recorded net interest income of RON 2.7bn, which represents an increase of 45.4%. Further, when observing the Group’s net fee and commission income, it increased by 24.1%, amounting to RON 777.7m. Both increases could be partially attributed to the consolidation of Bancpost, which was merged in 2018.

Operating income amounted to RON 3.9bn, which represents an increase of 35.3%.

Operating expenses, on the other hand, increased by 40.8%, amounting to RON 2bn. This increase could be attributed to the integration expenses of the above-mentioned Bancpost.

Going further down the P&L, Banca Transilvania observed an 18% increase in EBT, amounting to RON 1.7bn. However, the Group did not record as high increase in net income, as their impairment/income tax expense increased by RON 246m (+122.9%). As a result, Banca Transilvania observed a 1.2% increase in net income, amounting to RON 1.2bn.

Banca Transilvania Performance (2015 – 2018) (RON m)*

*In April 2015 the Bank acquired Volksbank recognizing a bargain gain of RON 1.65bn

Turning our attention to L&D, customer deposits reached RON 65.16bn (+33%), of which RON 43.34 are individual deposits and RON 21.82 billion are corporate deposits. Meanwhile, loans have increased by 25% YoY. In 2018, L/D ratio amounted to 61% which is a decrease of 4p.p.

When observing the NPE ratio, in 2018, it continued its declining trend, amounting to 4.97% (-1.06p.p.). Note that the company did not report its NPL ratio for 2018 in their preliminary report.

NPL & NPE ratio (%)*

*NPE ratio for 2015 not reported

L/D ratio (%)

In 2018, besides the merger and integration of Bancpost, BT Leasing merged with ERB Leasing, company purchased from Eurobank Group, once with Bancpost and ERB Retail Services. BT Direct and ERB Retail Services, non-banking institutions consumer finance companies will merge in the first half of 2019.

Category : Flash News

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