The bank will use RON122.5 million from last year’s profit to fuel the capital increase, while the remainder cash would be drawn from previous reserves and several issuance premia. In exchange for the cash, the bank will issue new shares to be distributed free of charge to existing shareholders.
Banca Transilvania reported net profit of RON131.8 million in 2011, up 35% on the year, as provisioning costs fell, while net interest revenue was higher.
The shareholders also approved an issue of convertible bonds worth EUR30 million, as well as a buyback program for 0.84% of the bank’s stock. At the latest similar offering in 2005, the bank sold 5-year convertible bonds worth $24.1 million.
Vasile Puscas, formerly minister-delegate for European Affairs and Romania’s chief negotiator with the European Union, was elected member on the bank’s board of administrators, replacing Robert Rekkers, who resigned earlier in the year from his seat on the board and the position of general manager.
The holders approved the bank’s income and expenses budget for this year. Banca Transilvania expects a 20% year-on-year increase in pretax profit, to RON334.7 million (EUR76.5 million) and a growth of 11% in net asset value, to RON28.53 billion (EUR6.52 billion), according to a budget calculated on international financial reporting standards (IFRS). (EUR1=RON4.3747)