Banca Transilvania makes profit of 151bn lei

Cluj-based Banca Transilvania’s shares yesterday started being traded again on the Stock Exchange after a three-day suspension called for registering a share capital increase.

Banca Transilvania shares have been trading at higher and higher prices over the past two weeks, due to speculations about the European Bank for Reconstruction and Development (EBRD) taking over stock in the bank, but also due to its very good financial results registered since the beginning of the year.

Banca Transilvania made 151bn lei in net profit over the first five months of the year and 619bn lei in total revenues. The net profit for 2000 reached 178bn lei. The company by the end of May was registering 3,712bn lei in assets.

Banca Transilvania’s performance rates at the end of the month were very good. The equity capital profitability reached 21.4%, while overdue and problem credits accounted for only 0.14%.

The price of the bank’s shares on the Stock Exchange has been constantly increasing lately, going up 18% to 1,850 lei this month.

Banca Transilvania quotation also registered a jump in late April, following the announcement of Q1 results. The current Banca Transilvania quotation is far-off from the all time low, 1,350 lei registered in March.

Banca Transilvania shares were suspended from trading for the Stock Exchange to register the latest share capital increase, completed on May 31.

The bank shareholders on March 30 decided to have the share capital increased by capitalising the reserves made from the net profit, the shares distributed to the employees as incentives, as well as from asset reassessment at the end of last year.

The share capital of the bank following these operations went up to 336bn lei, while its equity capital amounts to 718bn lei (some $24 million). Banca Transilvania was established back in 1993 with $2.4 million in share capital. Banca Transilvania’s Stock Exchange capitalisation reaches $21.9 million.

The latest rumours on the banking market are about the European Bank for Reconstruction and Development being in talks for taking over 15% in Banca Transilvania by buying the stock from the current owners or by a capital increase.