Banca Transilvania posts first quarter profit worth 42 billion lei

Profitability of Banca Transilvania was characterised during the first quarter of this year by a relatively constant level as compared to the same period of last year, the net result registered during this period standing at 42.07 billion lei.

“First three months results are positive, comparable to those posted one year ago and are part of the normal evolution tendency the bank has registered over the last years,” Valentin Ionescu, head of operations with Euro Invest Vision, told Ziarul Financiar.

During this period, the bank’s revenues totaled 188.20 billion lei and posted total expenditures of 91.09 billion lei.

Operating revenues retained an important position, amounting to 105.39 billion lei, followed by income derived from treasury and inter-banking operations, which came to 26.44 billion lei.

The most important expenditures the bank recorded during this period were expenditures on customer operations, which reached a level of 69.69 billion lei.

“Banca Transilvania has recently announced a capital raise, too, through which it will distribute 435 free shares to shareholders who subscribed to the registry by January 31,” Ionescu also said.

Practically, for 1,000 held shares, 430 new free shares will be granted, with the possibility to subscribe, but not free of charge, another 290 shares.

In 1999, the bank registered net profit standing at 127.8 billion lei, almost twice the value of net profit on the previous year. Four new subsidiaries were inaugurated last year, in Bucharest, Satu Mare and Turda, as well as two agencies in Oradea. The bank’s territorial network includes at present 34 operative units. Moreover, the bank’s management considers that at the end of the year 1999 immediate liquidity, that is the ratio between the bank’s availabilities and its total assets, stood at 46.9 percent, the minimal safety level for this indicator being 18 percent, while its solvability indicator amounted to 26 percent, in the context of a minimum of 8 percent imposed by the National Bank.

Banca Transilvania has a share capital worth 100 billion lei, divided into shares with a face value standing at 1,000 lei. The structure of significant shareholders includes Oltenia Financial Investment Company (SIF), with a stake of 5 percent, and SIF Banat-Crisana holding a stake of 5 percent of the company’s capital.

Originally, Transilvania was set up as a Romanian banking company with Romanian-foreign mixed, entirely private capital. The bank was founded at the end of 1993 and the bank became active in February 1994 after it got the definitive functioning licence from NBR.