Biggest bank in Romania proposes higher dividends after 33% increase in profits

Banca Transilvania, the biggest lender in Romania by assets, increased its net profit by a third in 2019 compared to 2018, to RON 1.62 bln (EUR 342 mln), due to higher operational results and lower tax on profit paid to the state, according to the preliminary financial report quoted by Romania-Insider.com.

The bank’s board of directors will propose to the shareholders the distribution of around 60% of the profit in 2019 as cash dividends, Banca Transilvania said in a press release. Thus, the total dividends could amount to RON 970 mln (over EUR 200 mln) and the dividend per share to RON 0.186, resulting in a dividend yield of 7.3% (considering the current share price of RON 2.52 per share).

The total dividends and the dividend per share are higher than last year, while the dividend yield is similar, given that the bank’s shares have gained about 28% in the last 12 months. Banca Transilvania’s shares gained 1% on Thursday, after publishing the financial report, amid a weak trading session in which the main index of the Bucharest Stock Exchange – BET was down 0.5%.

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