Banca Transilvania's gross profits grew 40% in the first nine months of this year, in line with preliminary financial results. The bank's assets have doubled since last September.
At the end of September, the bank amassed net profits of 531 billion ROL (12.9 million euros), in line with Romanian accounting standards (RAS). The value of the bank's assets reached 23,449 billion ROL (570 million euros), giving it a market share of 2.66%.
Over the last 12 months, the bank managed to raise its equity by 50% to 2,837 billion ROL (69 million euros) partly through a new stock issue that raised around 9 million euros from the capital market.
The bank's investments have been mainly directed toward government bonds, in which by the end of September it had invested four times more than a year ago. In the same period volume of granted loans surged by 95%. "We have placed more money in government bonds because the yields have rallied a certain amount recently and also we have more liquidities due to the increase in the bank's assets," said Ionut Patrahau, deputy general manager. Revenues grew by 66% to 1,765 billion ROL (43 million euros), while expenditure increased by 70% to 1,160 billion ROL (28 million euros).
Net provisions constituted by the bank in the first nine months of this year amounted to 72.5 billion ROL (1.7 million euros), 26 times higher than last September.
The bank's solvency shrank to 15.5% frrom a value of 24% a year ago.
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