The shareholders of Romania's leading financial group, Banca Transilvania (BVB: TLV), approved on April 25 the distribution of dividends in the amount of RON 1.59 billion (EUR 320 million) out of the RON 3.53 billion net profit generated last year. 

The bank's shareholders also decided to distribute free shares to existing shareholders, in a proportion of 189 new shares for each existing 1,000 shares. RON 1.73 billion out of last year's profit will be used in the operation of capitalising the bank with the shares handed to the existing shareholders. 

Banca Transilvania's market capitalisation is RON 25.8 billion (over EUR 5 billion) after the price of its shares increased by 13.75% y/y to RON 28.14 on April 25. 

For this price, the dividend yield would be 6.2%, not counting the free shares that roughly double the shareholders' gain.

iulian@romania-insider.com

(Photo source: Banca Transilvania)