Banca Transilvania last year generated net income of 99.6 million RON (29.3m euros), enjoying a considerable profit surge for the first time in recent years, according to data released on the Stock Exchange. Over the last five years, the bank”s net income had oscillated between 12 and 15 million euros.
The bank”s stock on Wednesday climbed to 1.5 RON, the highest price posted since the last capital increase, 0.7% higher than the previous day. At this quotation, the bank”s stock market capitalisation has reached 983 million euros, namely 36 times the profit derived last year.
The bank”s profit rose by 64% in RON or 95% in euros, in comparison to last year, with the solid asset increase offsetting the narrower margin between the interest rate paid for deposits and the interest levied in the case of loans.
The bank”s assets last year surged by 90% in RON or by 104% in euros, hitting 1.45 billion euros at yearend. In recent years, Banca Transilvania has managed to constantly expand its market share. According to the latest National Bank data, at the middle of last year Transilvania ranked 9th in the banking system, with a 3.4% market share, from 2.6% in the previous year and 2% two years before.
“The solid figures have been generated by the policy implemented at the level of the three business segments: retail, corporate and SMEs,” stated Robert Rekkers, Banca Transilvania manager. The bank is regarded as the next most likely takeover target in the banking system, being one of the most closely watched stocks on the market after the privatisation of the biggest bank, BCR.
The bank”s stock was one of the most profitable investments on the stock exchange last year, bringing investors a 150% gain over the last 12 months, including free stock. Last year, the bank mainly focused on the development of its product portfolio targeting SMEs, launching several lending products that focussed upon their needs. At the end of last year Transilvania managed to contract its first syndicated loan, worth 75 million euros.