Banca Transilvania, 4m-euro profit in Q2
Banca Transilvania, the only Romanian privately-held lending
institution in top ten, in the second quarter generated net income
worth 17.2m RON (around 4m euros), up 71% from a year ago, but only
1.2m RON above the Q1, 2010 gain. In H1, the bank derived net
income worth 33.2m RON (almost 8m euros), three times bigger than
in the first half of last year. The half-year net income accounts
for less than 10% in the operating figure, which climbed to 390m
RON, by 68% from H1, 2009, but was strongly eroded by bad loan
provision expenses, which climbed by 49%, to 330m RON. The
provision volume thus topped 1bn RON (over 260m euros), against a
loan volume of 13m RON (almost 3.2bn euros). Though foreign
currency lending accounts for just 38.3% in the total portfolio,
Banca Transilvania quotes RON decline against the euro as a cause
behind the increase of loans with late payments of above 90 days.
"We've focused on finding solutions matching clients' demands, such
as loan restructuring or cheaper loans, the launch of a platform
dedicated to people applying for European funds, as well as of new
products. Moreover, we've come up with commercial lending campaigns
and campaigns to refinance loans from other banks, to attract new
clients, which were welcomed," comments Robert Rekkers, the general
manager of Banca Transilvania.