August 26 (SeeNews) - Romania's Banca Transilvania [BSE:TLV] said that its net profit edged up by 0.7% year-on-year in the first half of 2022, to 907 million lei ($186 million/186 million euro).
The bank's operating income rose 7.7% on the year to 2.338 billion lei in the first six months of 2022, the lender said said in an unaudited first-half financial report filed with the Bucharest Stock Exchange, BVB, on Friday.
Operating expenses rose 15.8% on the year to 1.313 billion lei in the first half, determined by the increase in personnel expenses, by tensions in the labour market as well as by the inflationary environment, the bank added.
"During the first six months of the year we continued to finance the economy and the state, while offering good yields on the deposits held at BT. We reached new records in both card payments and business operations, based on strong operational volumes," Banca Transilvania CEO Omer Tetik said in a statement accompanying the financial report.
"Despite the challenging economic conditions, we look forward with confidence to the period ahead. We have a good appetite for financing the Romanian economy and growing our business," Tetik added.
At the end of June, the bank's assets totalled 133.8 billion lei, up 20.7% on the year.
Net loans increased to 60.2 billion lei at end-June, up 41.1% on the year. Deposits from customers reached 107.9 billion lei in the first half of 2022, rising by 14.3% compared to end-June 2021 .
Non-performing loans made up 2.55% of Banca Transilvania’s total loan portfolio at end-June, while their coverage with related provisions and mortgage collaterals remained at a comfortable level of 180% and in line with the bank’s risk appetite.
Blue-chip Banca Transilvania is the largest Romanian privately-owned bank. Its net profit rose by 49% year-on-year in 2021, reaching 1.782 billion lei.
Banca Transilvania Group, which also comprises Victoriabank, Idea Bank, BT Leasing Transilvania IFN, Idea Leasing, Tiriac Leasing IFN, BT Direct IFN, BT Microfinantare IFN, BT Leasing MD, BT Asset Management, BT Capital Partners and BT Pensii, posted a net profit of 1.046 billion lei in the first semester of 2022, up 3.1% year-on-year. Group assets totalled 140.1 billion lei at the end of June 2022, up by an annual 21.5%.
At the end of March, the group employed 11,186, of which 8,964 work for the bank.
Banca Transilvania's shares traded 0.75% higher at 20.25 lei on the Bucharest bourse as at 1115 CET on Friday.
(1 euro= 4.8756 lei)
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