The bank said its net profit was 448.1 million lei (EUR100.9 million), from RON374.9 million in 2013.
The operational income amounted to nearly RON2 billion in 2014, 20% higher compared to RON1.66 billion in the previous year.
“Banca Transilvania’s positive results were supported by activity streamlining and cost control initiatives, which together with the overall business growth lead to an improvement of the cost to income ratio in 2014 by more than 14 percentage points versus 2013, notably 41.92%,” the lender said in a statement.
It reported an 11.2% increase in total assets, to RON35.65 billion, supported by a 5.3% rise in loan portfolio to more than RON20 billion. Deposits attracted from customers rose 16.4% to RON30.05 billion, so that the loan-to-deposit ratio stood at 66.6% at the end of 2014.
The bank said it continued to write off non-performing loans that are fully provisioned, according to the central bank’s recommendation. Write-offs amounted to RON759 million in 2014.
According to the statement, Banca Transilvania’s NPL ratio is at 10.87% of the total loan portfolio, below the Romanian banking system’s average.
Last year, the bank announced the acquisition of the local unit of Austria’s Volksbank, a transaction expected to close by mid-2015.
“For the future, we will maintain a pragmatic and entrepreneurial attitude, focusing on profitable growth opportunities both for the bank and at group level. We will preserve the endeavor to increase efficiency and support the Romanian economy, attentive and cautious to the challenges raised by the current economic environment in Romania and in the neighboring region,” said Horia Ciorcila, Banca Transilvania’s Chairman.
Banca Transilvania targets the second position in Romania’s banks’ ranking, where it currently stands on third, behind BCR and BRD. It is the largest bank owned by Romanian individuals and institutions.