The bank’s gross profit, however, was 3.5% higher on the year, at RON284.5 million, fueled by an increase in the loan portfolio.
“Loans increased by 5%, operating income, number of active clients and total assets are also on the increase. Q3 was particularly good in terms of our lending activity, the RON850 million growth versus end of last year, being booked mainly between July and September,” said Horia Ciorcila, Banca Transilvania’s Chairman of the Board.
The bank said its operating income was up 3% to RON1.15 billion in January to September, mainly due to a 5% increase in lending.
The risk costs were RON280.54 million in the first nine months, a similar level with the one registered in the same period a year ago. Loan provisions rose to RON2.35 billion in September, versus RON2.11 billion at the end of 2012.
Banca Transilvania’s assets reached RON30.29 billion at the end of September, 2% higher than at the end of 2012.
“Our immediate objectives for the forthcoming period reside in the further development of our lending activity, in encouraging lending in RON and supporting start-ups, SMEs and individuals,” said Ciorcila.
Banca Transilvania’s shares are traded in Buchares, were they closed Thursday at RON1.418, up 0.6% on the day. The European Bank for Reconstruction and Development is the bank’s main shareholder, with a 14.6% stake. (EUR1=RON4.4304)