During 9M 2022, Banca Transilvania recorded a net interest income growth of 39% YoY, net fees and commissions income growth of 22%, op. income growth of 22%, and a net profit of RON 1.68bn, +1% YoY.
The net interest income amounted to RON 3.15bn in 9M 2022, representing an increase of 39% YoY. The growth was supported by increases in ROBOR rates and a growth in the number of newly issued loans. In fact, during this period, Banca Transilvania (BT) issued 206k new loans, which is an increase of 32% in terms of corporate loans (compared to YE 2021), and a growth of 7.4% in terms of retail loans. 3.8m customers chose Banca Transilvania as its bank, which is 313k new active customers in the 9M 2022. This is an increase of 4.7% compared to YE 2021.
Moving on, the net fees and commissions income increased by 22% YoY, and amounted to RON 852.4m. This was mainly due to the increase in card transactions as well as the increasing degree of customers’ digitalization. In fact, by the end of 9M 2022, 84% of BT’s customers were digitalized. Meanwhile, net trading income increased by 43% YoY and amounted to RON 553.2m. This came as a result of significantly higher net income from derivative instruments and foreign exchange transactions being recorded in this period. As a result of these increases, op. income amounted to RON 4.43bn, an increase of 22% YoY.
Operating expenses also grew, increasing by 48% YoY and amounting to RON 2.49bn. This growth was influenced by higher net expenses with depreciation adjustments, expected losses for assets, provisions for other lending risks and commitments, which increased from RON 10.5m to RON 369.1m during the period. Personnel expenses also grew, increasing by 26% YoY to RON 1.21bn. In regards to personnel expenses, BT Group continues to increase the number of employees, and since the beginning of the year, this grew by 2.9%. Combined with the high inflation rates in Romania, higher salaries also have to be offered, leading to the growth in personnel expenses.
As a result of fast OPEX growth, the EBT amounted to RON 1.94bn, remaining roughly the same YoY. Following this, the net profit also remained almost unchanged, growing by 0.6% to RON 1.68bn.
Banca Transilvania key financials (9M 2022 vs. 9M 2021, RONm)
Source: Banca Transilvania, InterCapital Research
Moving on to the balance sheet, total assets increased by 6.6% YTD, to RON 141.3bn. Of this, the largest growth was recorded in the financial assets at amortized cost, which increased by 44% YTD to RON 97.3bn. In this category, debt instruments increased the most, by over 16x YTD to RON 25.5bn. Loans and advances to customers increased by 19% YTD, to RON 65.1bn. On the other hand, placements with banks decreased by 48.6% YTD, to RON 5.3bn.
Meanwhile, total liabilities amounted to RON 130.6bn, an increase of 7.1% YTD. This growth was driven by higher deposits from customers, which grew by 5% YTD to RON 113.4bn. Higher deposits from banks were also recorded, in the amount of RON 1.8bn, an increase of 78.1% YoY.
