Banca Transilvania Group, a leading financial institution in Romania, has reported a significant increase in its net profit for the first nine months of 2023. The bank announced today that its net profit soared by 36.6% year-over-year to 2.29 billion Romanian lei (RON), with the bank alone contributing RON 1.86 billion, marking a 29% increase from the previous year.
The robust performance was largely driven by a 20.6% year-over-year rise in net interest income, which reached RON 3.79 billion, outpacing the net profit increase. The bank itself reported a net interest income of RON 3.10 billion, up by 18.5% compared to the same period last year.
CEO Ömer Tetik credited the impressive results to an uptick in business volumes, processed transactions, and an expansion of digitalization efforts across the bank's operations. Despite a general slowdown in lending within the banking sector, Banca Transilvania managed to grow its loans and advances by 6.3% year-to-date at the group level. The return on equity also improved significantly, reaching an impressive 25.8%.
On Friday, it was reported that the bank's operating income for the first nine months of the year increased by 20.7% to RON 4.64 billion, buoyed by heightened transaction volumes and a comprehensive range of banking services provided to over 4 million clients. Assets expanded to RON 150.3 billion, with net loans and customer deposits growing by 8.3% and 14.8%, respectively. The group maintained a healthy non-performing loans ratio at just 2.22%.
The positive financial results have been reflected on the Bucharest Stock Exchange, where shares of Banca Transilvania were trading at an elevated rate of RON 22.8 today. The group's total assets reached RON 157.6 billion by the end of September, with Banca Transilvania Group comprising Victoriabank and other subsidiaries operating a network of 513 branches across the nation.
The exchange rate against the euro was noted as 1 euro equaling approximately RON 4.97, providing context for international investors and market observers following the bank's performance.
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