Banca Transilvania (BVB ticker: TLV), the third largest bank in Romania by assets, posted a net profit of EUR 76 million in the first nine months of 2014, 41% higher compared to the same period of last year.

The bank’s operating income was up by 26%, at EUR 326 million, while operating expenses increased by 5%, to EUR 138 million, according to the bank’s quarterly report.

Net impairment losses on assets and credit commitments also increased by 57%, to about EUR 100 million.

The bank’s total assets were EUR 7.7 billion, at the end of September 2014, 6.2% higher compared to the end of last year. The gross loan portfolio increased by 4.5%, to EUR 4.5 billion, while the provisions related to non-performing loans were some EUR 550 million, slightly lower than in December 2013. The provisions represented 12.2% of the total loan portfolio.

“The first nine months of this year confirmed the 2013 improvement trend in the payment behavior of retail and SME clients,” the bank said.

Deposits from customers also increased by 6.1%, to EUR 6.2 billion. The loans to deposits ratio was 73% at the end of September.

“The number of active clients – both individuals and companies – increased by 14% compared to the same period last year, from 1.65 million to 1.88 million clients,” the bank announced. Banca Transilvania ended the third quarter with a portfolio of 2.27 million cards, generating transactions 16.5% higher than for the same period of last year.

Banca Transilvania is the largest lender on the local market which is majority owned by Romanian investors. Among the bank’s largest local investors are Horia Ciorcila, the bank’s founder and president of the administrative board, and investment fund SIF Moldova.

The bank’s largest international shareholders are EBRD, with a 14.6% stake, and IFC, World Bank’s investment division, with 3.6%.

Banca Transilvania’s shares are traded on the Bucharest Stock Exchange. They gained about 25% since the beginning of this year. The bank has a market capitalization of over EUR 1 billion.

Andrei Chirileasa, andrei@romania-insider.com