In the 9M of 2019, Banca Transilvania recorded an increase in net banking income of 3.53% and an increase of net profit of 26.4%

In the first nine months of 2019, Banca Transilvania recorded net interest income of RON 2.27bn, marking an 8.51% increase, which was supported by a solid loan growth in this year during which the Group granted over 0.17m loans to companies and individuals. Meanwhile, net fee and commission income amounted to RON 620.3m, representing an increase of 8.98%. As a result, net banking income amounted to RON 3.37bn, representing an increase of 3.53% YoY.

Operating expenses witnessed a solid decrease of 6.4%, amounting to RON 1.48bn, which came solely from the decrease of other operating expenses by RON 248.9m (-33.9%).  

As a result of the above-mentioned, the Group recorded a strong growth of the bottom line, with net profit amounting to RON 1.56bn (+26.4%). Such growth reflects growing business efficiency and consolidation. The subsidiaries and the capital investments contributed with over RON 183 million to the BT Group’s profit. The operational efficiency improved further to 43.95%.

Turning our attention to the balance sheet, total assets observed strong growth of 10.9%, amounting to 86.3bn. The increase came mostly on the back of the growth of cash and cash equivalents and loans and advances to customers. Net loans and advances to customers amounted to RON 40.29bn, marking an increase of 6.54%. As of Q3 2019, loans and advances to customers accounts for 46.6% of the total assets (-1.9 p.p.). Meanwhile, deposits from customers witnessed a strong growth of 9.61%, amounting to RON 71.42bn. As a result, deposits from customers currently account for 92.3%. Therefore, L/D ratio stands at relatively low 56.4% (-1.6% YoY), showing room for further loan growth.

The NPE ratio of Banca Transilvania, according to the EBA ratio, stands at 4.49%, while the total coverage ratio according to the EBA standards is 96%. The bank’s CAR is 18.12% without and 21.10% with the profit included.