In 2019, the Group recorded an increase in net banking income of 17% and an increase in net profit of 46.6%.
Banca Transilvania published their FY 2019 report. According to it, the bank recorded net interest income of RON 3.07bn, representing a strong growth of 11.8% YoY. Such an increase could be attributed to a solid loan growth. Meanwhile, net fee and commission income went up by 5.5% amounting to RON 820.3m. As a result, net banking income witnessed a strong increase of 17% YoY, amounting to RON 4.61bn.
When observing operating expenses, they amounted to RON 2.19bn (+7.7%), which mostly came on the back of higher amortization by RON 148.7m. The increase in amortization was partially offset by lower personnel expenses, which amounted to RON 1.04bn (-2.5% YoY). Consequently, the bank’s CIR stood at a comfortable 47.1%.
Going furhter down the P&L, the Group recorded a net profit of RON 1.85bn, representing a strong increase of 46.6%. Note that such a strong performace throughout the P&L could be partially attributed to the merger with Bancpost.
Turning our attention to the balance sheet, at the end of 2019 Banca Transilvania’s total assets reached RON 91.7bn. Of that loans amounted to RON 40.35bn showing an increase of 6.71%. In 2019, the Group granted roughly 223,000 loans to companies and individuals. The Bank’s new loan production was over RON 10.5bn for company clients. Meanwhile the number of active customers increased by 15%, reaching about 3.3m, following the bank’s merger with Bancpost. Note that the Group’s NPE ratio currently stands at 4.36%
On the liabilities side, deposits amounted to RON 77.04bn, which recorded a strong increase of 18.23%. Of that, retail deposits account for RON 51.67bn. Thus, L/D ratio stood at a relatively low 52.4% (-5.7 p.p. YoY), showing room for further loan growth.
As of end 2019, Banca Transilvania’s capital adequacy ratio without 2019 profit stands at 17.74%, while including the 2019 profit it would stand at 21.2%.
Dividend Proposal
Besides the financial results, Banca Transilvania published the proposal of a dividend, which is subject to approval at the GSM. The Board of Directors proposed to the shareholders the distribution as cash dividend of around 60% of the distributable retained earnings related to 2019 results.
Assuming a 60% payout ratio, the compay’s dividend would amount to RON 0.212 per share, which translates into a dividend yield of 8.6%. Such a dividend would be 25% higher compared to the one paid out in 2019.
In the graph below, we are bringing you historical overview of the company’s dividends.
Dividend per Share (RON) & Dividend Yield (%) (2016 – 2020)
