Banca Transilvania became Romania’s largest lender in 2018 after integrating Bancpost.
The bank’s operating profit grew to RON1.8 billion and the bank maintained a comfortable level of cost/income ratio at 49.9%.
The bank’s board of directors decided in a meeting Tuesday to propose the distribution of gross dividends totaling RON818.12 million at the general shareholders meeting in April. This represents a gross dividend per share of RON0.17.
The group’s loan portfolio grew to RON38.02 billion in 2018, up 25.67% on the year, of which the bank’s loan portfolio stood at RON36.55 billion, up 22.2% on the year. The bank granted RON15.5 billion to SMEs and RON11 billion in mortgage and home equity loans.
Customer deposits reached RON65.16 billion, up 33.16% on the year, of which RON43.34 billion in individual deposits and RON21.82 billion in corporate deposits.
Group assets reached RON77.9 bilion at the end of 2018, up 30.23%, due to the integration of Bancpost. The bank’s assets grew 25%, to RON74.118 billion.
Besides the merger and integration between Banca Transilvania and Bancpost, BT Leasing merged with ERB Leasing, company purchased from Eurobank Group, along with Bancpost and ERB Retail Services. Non-banking institutions BT Direct and ERB Retail Services will merge in the first half of 2019.
Its non-performing exposure rate stood at 4.97% end-December 2018 and its coverage ratio stood at 94%. In case collateral is considered the coverage rate stands at 133%.
“In anticipation of a decision regarding the additional tax on bank assets, Banca Transilvania reiterates the idea that the banks’ capital and competencies have been built over time and can be quickly lost without the proper investments. Romania needs a strong banking system and higher lending growth rates, to reduce the gaps from the Western countries. The decrease of the available profit for capitalization will slow down the development of the Romanian banking system and will affect economic growth,” the bank said.