Romania's largest bank by assets, Banca Transilvania – with a 19% market share by assets as of end-2022, reported RON 2.18 bln (EUR 440 mln) net profit last year, or 21.6% of the entire banking system's aggregated earnings.

"The financial results confirm our expectations and are the foundation for our future ambitions. We closely monitor and remain mindful of the geopolitical and macroeconomic developments, but, at the same time, keep ourselves open to potential opportunities", states Horia Ciorcilă, Chairman of the Board of Directors, Banca Transilvania.

What stands out as regards Banca Transilvania's financial results is the bank's high return on equity (ROE), which surged from 19% vs 13.3% system's average in 2021 to 27% vs 16.6% for the banking system on average in 2022.

The bank's net profit rose more or less in line with the banking system's average: by 22%, compared to +25% for the entire banking system.

However, Banca Transilvania's equity shrunk by 15% YoY at the end of 2022, which was possible given the robust (+8.9% YoY) rise of liabilities (deposits, particularly) with the result of 7.1% YoY advance of total assets (liabilities+equity). This was not much below the 9.6% advance of the total banking system's assets. But it marks better use of resources compared to the banking sector's average.

When it comes to lending, the stock of loans in Banca Transilvania's portfolio increased by 21.5% to RON 63.45 bln, much faster than the 12% YoY advance of the total non-government loans reported by the entire banking system at end-2022. 

iulian@romania-insider.com

(Photo source: Banca Transilvania)