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Romania's Banca Transilvania H1 net profit rises 28% y/y

Romania's Banca Transilvania H1 net profit rises 28% y/y Banca Transilvania

BUCHAREST (Romania), August 14 (SeeNews) – Romania's Banca Transilvania (BT) [BSE:TLV] said on Wednesday its net profit rose by 28% year-on-year in the first half of 2019, reaching 848 million lei ($201 million/179 million euro).

"It was a dynamic period, with increasing volumes, which allowed us to obtain a good income in the context of reduced fees. The growth pace of the deposits, loans and operations shows the customers trust, both individuals and SMEs, in BT. The results of the first semester prepare the ground for the big plans we have in the forthcoming period," Omer Tetik, CEO of Banca Transilvania, said in a statement accompanying the bank's unaudited first-half financial statement.

The bank's operating income rose 32% on the year to 1.88 billion lei in the first six months of 2019.

At the end of June the bank's assets totalled 77.7 billion lei, up 5% year-on-year.

First-half net loans increased to 37.7 billion lei, up 2.7% on the year. During the first six months of 2019, the bank granted 100,000 new loans to individuals, SMEs and corporate customers.

Deposits from customers rose 3.2% year-on-year to 64.8 billion lei in the six months through June.

Non-performing loans made 4.65% of Banca Transilvania’s total loan portfolio at the end of June, while their coverage with related provisions and mortgage collaterals remained at a comfortable level of 96% and in line with the bank’s risk appetite.

At the group level, Banca Transilvania, which also comprises BT Asset Management, BT Direct, BT Securities, Factoring company and Medicredit, posted a net profit of 942.3 million lei in the first half of 2019, up 9% on the year. Group assets totalled 81.56 billion lei at the end of June.

Blue-chip Banca Transilvania was Romania's largest bank by assets at the end of 2018 with a market share of 16.48%, up from 13.87% a year earlier, the country's central bank said last month. Its net profit rose by 3% last year, reaching 1.2 billion lei.

Banca Transilvania's shares traded 2.10% lower at 2.10 lei on the Bucharest Stock Exchange as at 1440 CET on Wednesday.

(1 euro=4.7216 lei)