Banca Transilvania Published their H1 2021 results yesterday showing a 15% YoY increase in net banking income and a net profit of RON 1,015m (+47%).

In H1 2021 Banca Transilvania recorded a net interest income of RON 1,529m, representing a 5.2% YoY increase, driven by lower interest expense. Meanwhile net fees and commissions amounted to RON 446.9m (+27.0% YoY).

Moving further down the P&L, operating expenses are down -4.2% YoY, standing at RON 1,245m. The drop in expenses came from lower impairments which were sliced in half to RON 113m (-50.7% YoY).

As a result of the abovementioned, net profit amounted to RON 1,015.5m (+47.2% YoY).

The cost of risk during the first half of 2021 amounted to 0.5%. During the H1 of 2021, the balance of provisions increased by 9.2% reaching RON 3,485m, compared to the balance at the end of 2020 (RON 3,190m).

Turning our attention to the balance sheet, total assets grew 7.3% since the beginning of the year, amounting to RON 115.3bn and by 17.2% compared to H1 2020. Of that, RON 44.4bn is attributed to the bank’s loan portfolio. Loan portfolio, considering also the receivables from leasing contracts, recorded an increase of 8.9% when compared to H1 2020. Deposits reached RON 97.2bn (+21.5% YoY), of which RON 65.9bn are retail deposits and RON 31.3bn are company deposits.

The NPE ratio, according to the EBA definition, is 3.47% as of H1 2021, while the total coverage ratio, according to the EBA standards, is 148%. The bank’s CAR without H1 2021 profit is at 21.83% and 23.54% if profit is included.