Romania’s largest lender Banca Transilvania’s profits grew by 43% YoY in H1

Banca Transilvania (BVB:TLV), Romania’s largest bank by assets, saw its net profit grow by almost 43% year-on-year to RON 1.81 billion (EUR 360 million) in the first half of the year, while the profit of the entire financial group rose to RON 2.15 billion, up 35.7% year-on-year.

The share of non-bank subsidiaries and equity interests in the group’s profit increased by only 7.4% year-on-year.

The group’s loans and deposits rose significantly above the market average and by over 13% year-on-year in June 2024.

In addition to organic growth, the group’s expansion in the coming years will be reinforced by the acquisition of OTP Bank Romania and its subsidiaries.

The positive financial evolution of the group in the first half of this year was based on the growth of the net loan portfolio and leasing receivables, which increased by 13.4% y/y, reaching RON 78.8 billion. The volume of TLV customer deposits at the individual level increased by 13.5% y/y, reaching RON 139 billion.

As a result, the group’s operating revenue increased by about a quarter to RON 4.6 billion.

Banca Transilvania’s market capitalization stands at RON 26.26 billion (EUR 5.28 billion) following a 70% YoY share price increase. The dividend paid out of last year’s profit brought a rate of return of 3.81%.

During the first six months of the year, the Banca Transilvania financial group took further steps towards growth through acquisitions made in Romania, both in the banking sector and in complementary areas.

In February 2024, Banca Transilvania signed a Sale and Purchase Agreement with OTP Group to acquire OTP’s Romanian subsidiaries: OTP Bank Romania, OTP Leasing Romania, OTP Factoring Romania, OTP Consulting Romania, OTP Advisors Romania and OTP Bank Romania Foundation. On July 30, after receiving regulatory approvals, Banca Transilvania announced the completion of the acquisition.

Separately, in May 2024, the group reached an agreement to acquire BRD Pensii, a company operating in Romania in the field of mandatory (Pillar II) and optional (Pillar III) private pensions. The acquisition is subject to the approval of the Financial Supervisory Authority in Romania.

[email protected]

(Photo source: Banca Transilvania)