Selling stake in insurer triggers 17% hike in net profit of Banca Transilvania to 398.23m lei

The fifth lender by assets in Romania, Banca Transilvania, announced net profit last year climbed 17 percent over the previous one to 398.23 million lei stemming from the sale of stake in insurer Asiban, according to the company's preliminary results.

Banca Transilvania's net profit in 2007 stood at 339.97 million lei.

The lender sold in 2008 some 25 percent of Asiban obtaining 222.50 million lei. Its operating profit stood at 175.73 million lei. Assets climbed 23 percent year-on-year in 2008, to 17.02 billion lei.

Yet, lending pushed the brake pedal in the fourth quarter last year, affected by the general market slump caused by the financial crisis and the new lending rules of the central bank created to fence risks when lending.

Moreover, the bank's liquidity is 3.42 million lei deposited at the central lender while 800 million lei are placed in state securities currently valued at 1.30 billion lei.

Revenues last year reached 4.29 billion lei, a 59 percent advance over the previous year while spending grew 66 percent to 3.82 billion lei.

Banca Transilvania has a share capital of 1.06 billion lei divided into 1.06 billion shares and is owned 14.54 percent by the European Bank for Reconstruction and Development.

The lender has a market value of 868.95 million lei corresponding to the last trading price of 0.82 percent today. Shares are traded at the first tier of the Bucharest Stock Exchange under the symbol TLV.

NewsIn