The bank’s net provisioning cost was at RON531.77 million in 2011, compared with RON640 million in the previous year. Total provisions climbed to RON1.8 billion, from RON1.35 billion at the end of 2010, the bank said in a news release.
Banca Transilvania’s operating revenue was stable on the year at RON1.48 billion, as higher interest and fees income were offset by the lower trading result. The net interest revenue rose 2% on the year to RON1 billion, the fee and commission revenue increased 3% to RON369 million. However, the trading income narrowed to RON84.8 million from RON127.1 million in 2010.
The pretax profit after provisioning climbed 38% to RON185.77 million, above the bank’s initial forecast of RON180 million.
Horia Ciorcila, Banca Transilvania’s chairman, said the bank is happy as 2011 objectives were surpassed, confirming that its activity is on a positive trend. “The annual results were predictable since the July-September 2011 was the best quarter in the past three years.”
“We’re ready for 2012 and we will continue to grow in the same prudent and healthy approach as we did in these past three years,” Ciorcila also said.
The operating costs rose 8% to RON766.7 million, following an increase in the bank’s operations. Last year, Banca Transilvania’s network expanded by some 20 units to 553 units.
The cost to income ratio was at 51.65% at the end of 2011, from 48% a year before.
The loan portfolio increased 15% to RON15.4 billion at the end of 2011, of which 8.62% are non-performing loans.
The credit to deposit ratio was at 0.76%, following a 17% increase in attracted resources. The credit adequacy ratio stood at 11.87%.
Banca Transilvania reported total assets of RON25.75 billion, up 19% from RON21.59 billion at the end of 2010.
Tuesday in Bucharest, Banca Transilvania shares closed up 2.5%, at RON1.02.
Bank shareholders include the European Bank for Reconstruction and Development – 14.61%, Bank of Cyprus – 9.7% and the bank chairman, Horia Ciorcila – 4.8%.