Banca Transilvania profit drops 24% in euros

Banca Transilvania logged nine-month gross profit worth 379.33bn ROL, down 10% in nominal terms from the results posted in the year-ago period. In euros, gross profit posted an even sharper decline (almost 24%), from 12.94m euros (on September 30, 2002) down to 9.87m euros on September 30, 2003. However, the bank’s officials say the drop is on schedule, since the bank is sacrificing profit this year, focusing on investments and market share instead.

“Ever since the beginning of the year we have said that we had a certain investment programme for 2003, endorsed by the shareholders, even if this meant we would have to take a profit trim. At any rate, nine-month results are in line with our expectations. I might even say we slightly exceeded the target, because we have already attained 76.3% of the full-year profit target after the first three quarters. Moreover, it is worth noting that banking assets – a relevant indicator – have climbed almost 24%,” the bank’s president, Robert Rekkers, told Ziarul Financiar.

Banca Transilvania shareholders endorsed an investment plan worth 7.5m euros for this year, with the bulk of the money aimed at the bank’s branches and IT network. Banking assets amounted to 303 million euros at the end of September, up 23.67% from the year-ago period.

Lending logged the biggest increase, as the bank granted loans worth 176m euros, up 60% from last year.

According to Rekkers, Banca Transilvania will continue to expand next year, as 100 subsidiaries are being planned and assets are set to increase to 500m euros.

The bank opened 14 subsidiaries in the first nine months, with their total number set to reach 70 by yearend.

The bank’s shares are listed on the first tier of the Bucharest Stock Exchange, with 3,950 ROL/share the latest trading price. Considering this price level, the bank’s market capitalisation has reached $115m.
oana.nuta@zf.ro