Romanian lender Banca Transilvania doubles net profit in the first nine months

banca-transilvaniaBanca Transilvania, the third-biggest lender in Romania, posted a net profit of EUR 146 million in the first nine months of this year, more than double compared to the result in the same period of 2015, says Romania-Insider.com.

Banca Transilvania’s operating income increased by almost 50%, to EUR 474 million, mainly due to the merger with Volksbank Romania, which was completed at the end of December 2015. The operating expenses went up by 17%, to EUR 187 million.

The risk costs also increased by some 54%, to EUR 114 million, including the impact of write-offs amounting to EUR 380 million. “The largest portion of the provisions booked as expenses in Q3 2016 serves BT’s endeavor to enhance the quality of its assets and is in line with the bank’s conservative approach in terms of credit risk management,” reads the bank’s financial report.

The non-performing loans represented 5.55% of Banca Transilvania’s total loan portfolio, at the end of September, a significant improvement compared to the 9.75% as at the end of 2015.

Banca Transilvania’s net loan portfolio went up by 5.3% compared to the end of December 2015, reaching EUR 5.87 billion at the end of September 2016. The bank granted almost 122,000 new loans to its retail, SME and corporate clients, in the first nine months of this year. The deposits also increased by 2.5%, to EUR 8.75 billion.

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