Romanian lender Banca Transilvania posted a net profit of EUR 7.56 million in the first three months of this year, double compared to the same period in 2010, when it stood at EUR 3.80 million, according to the bank. “We posted in the first quarter of 2011 a net income 98 percent higher than in the same period last year, considering that we approached the market with new products”, said Robert C. Rekkers, CEO of Banca Transilvania.

Operating expenses in the first quarter of 2011 amounted to EUR 42.27 million, up 5 percent compared to same period last year, while the cost/income ratio was of 47 percent, the bank retaining a good level of profitability. The loan portfolio was stable, mainly in RON, the balance amounting to RON 13.427 million (around EUR 3.1 billion), while the balance reserves increased by 9 percent in the first three months of this year. The bank's non-performing loans, with debts over 90 days, stood at some 7.8 percent of the bank's loans portfolio.

In terms of operations, the bank increased by 12.29 percent in the first quarter of 2011 compared to first quarter 2010, including the cards segment operations.  During the bank's General Meeting, the shareholders voted to increase the capital amount with RON 295.735.713 (around EUR 70 million) through the issuance of 295 million new shares with a nominal value of RON 1 per share.

Banca Transilvania plans to increase profitability and market share this year. The bank will also continue to expand its network by planning to open 16 new branches. Banca Transilvania posted a net profit of EUR 23.2 million in 2010, 58 percent higher than the one posted in 2009.  It runs 536 outlets across Romania and manages 805 ATMs. The bank is owned by the European Bank for Reconstruction and Development (EBRD), with 15 percent of the shares, Bank of Cyprus with 9.5 percent, the SIFs investment funds, private investor Horia Ciorcila with 5 percent, the International Financial Corporation with 3 percent.

Irina Popescu, irina.popescu@romania-insider.com