Banca Transilvania set to invest more than 8m euros

Banca Transilvania will continue to make significant investments this year, as the bank’s management has endorsed an investment budget worth more than 8 million euros.
The bank invested over 7 million dollars last year, chiefly in subsidiaries, products, lending and IT. “We shall continue to enforce our substantial investment policy this year, having budgeted at least eight million dollars for growth and development, both for our network of branches and for the product range,” Ionut Patrahau, the bank’s vice-president told Ziarul Financiar.
According to Patrahau, Banca Transilvania is scheduled to open at least 35 new branches and agencies in 2004 (which would push the total number of branches up to 100), assets are estimated to go up 50-60% in real terms, whereas the electronic-banking and multicash products will be granted special attention.
The banking assets of Banca Transilvania last year climbed to 14,200 billion ROL, up 73% from the previous year. The bank had estimated the assets to grow to 12,800 billion ROL in 2003.
“Last year exceeded all our expectations and that is precisely why, this year, we aim to reach most of the targets we were supposed to get to by 2006. Thus, we are planning to see profitability go up 18-20% in euros this year,” the bank official said.
According to the latest public financial data, Banca Transilvania posted nine-month gross profit worth 379.93 billion ROL in 2003, down 10% in nominal terms as compared to the year-ago period. However, the bank’s management says the drop had been forecast, since the annual strategy favoured investments and market share over profits.
Banking assets had amounted to 303 million euros by the end of last September, up 23.67% from September 2002. Lending surged to 176 million euros, up 60% from the year-ago period.
The bank is listed on the first tier of the Bucharest Stock Exchange (BSE) and its market capitalisation revolves around 145 million dollars.
The bank’s main shareholder is the European Bank for Reconstruction and Development (EBRD), which holds a 15% stake in Banca Transilvania.
oana.nuta@zf.ro