A year earlier, the bank posted a net profit of RON33.2 million.
“The results for the first half of the year are, once again, promising. We’ve focused on a sustainable increase in profit and in our market share,” said Robert C. Rekkers, chief executive officer of Banca Transilvania.
Banca Transilvania’s net provisioning costs fell to RON295 million at the end of June, down from RON330 million in the year-earlier period.
At the same time, net income from interests rose 2% on the year to RON500 million, the lender said in its quarterly financial report.
Operating profit declined 2.4% to RON380.5 million in January to June, mostly due to higher operating expenses.
The bank said the cost to income ratio was 49% at the end of June, while the solvency ratio stood at 12.09%, above the central bank’s mandatory 10%.
End-June, Banca Transilvania had assets worth RON22.6 billion, up from RON21.6 billion in December 2010. The bank’s loan portfolio was RON14.2 billion, up 7% on the year.
Non-performing loans amount to 8.32% of total loans.
The bank currently has a share capital of RON1.477 billion, divided into 1.477 billion shares with a face value of RON1.
The European Bank for Reconstruction and Development holds a 14.61% stake in the lender, Bank of Cyprus holds 9.7% and board president Horia Ciorcila holds 5%, while the rest of the shares are traded on the Bucharest Stock Exchange.
On July 28, Banca Transilvania closed down 0.67% at RON1.182 a share. (EUR1=RON4.2403)