Banca Transilvania 1Q Net Profit Doubles To RON32M

04.29.2011 By Florentina Dragu

Romanian lender Banca Transilvania (TLV.RO) Friday said its first quarter net profit nearly doubled on the year to 31.76 million lei (EUR7.8 million), on lower provisions and higher income from interests.

Romanian lender Banca Transilvania (TLV.RO) Friday said its first quarter net profit nearly doubled on the year to 31.76 million lei (EUR7.8 million), on lower provisions and higher income from interests.

A year earlier, the bank posted a net profit of RON16 million.

Banca Transilvania booked provisions worth RON161 million in the first quarter, down from RON191 million in the year-earlier period.

At the same time, net income from interests rose 5% on the year to RON254 million, the lender said in its quarterly financial report.

Operating profit declined 7% to RON201.8 million in the first quarter, mostly due to lower income from financial activities.

"We've obtained promising results in the first quarter. The net profit increased by 98% on the year, helped by the launch of new products, while the solvency and liquidity indicators remain at adequate levels," said Robert C. Rekkers, chief executive officer of Banca Transilvania.

The bank said the cost to income ratio was 47% at the end of March, while the solvency ratio stood at 12.93%, above the central bank's mandatory 10%.

End-March, Banca Transilvania had assets worth RON22.04 billion, up from RON21.6 billion in December 2010. The bank's loan portfolio was RON13.4 billion.

Non-performing loans amount to 7.82% of total loans.

On the Bucharest market Wednesday, Banca Transilvania closed up 1.73% at RON1.532 a share. (EUR1=RON4.0744)