The total assets of the bank will increase to RON43.8 billion at the end of the year, according to its updated budget projections. They will therefore be 23% higher than at the end of 2014. The second leading bank in the system, BRD SocGen, had RON47 billion assets at the end of the first half.
“The important thing for investors is the net loan volume generated by the takeover of Volksbank, which went up 40% and will ensure growth in the coming years. The rise in loan volume will fuel the growth of the fee and interest income over the coming years, which are the bank’s main streams of revenue,” said Mihai Caruntu, BCR analyst.
The bank raised its gross profit target to RON2.2 billion for this year from the initial RON1.6 billion, by including the one-off profit from the acquisition of Volksbank Romania. Banca Transilvania paid EUR711 million for Volksbank Romania, EUR81 million of which towards the capital of the bank and EUR630 million towards repayment of the lines of credit Volksbank’s shareholders extended to the Romanian subsidiary.
(English version by Loredana Fratila-Cristescu)