* The price of the stock rose to 1.4 lei/unit
In 2010, Banca Transilvania (TLV) posted a net profit of 97.85 million lei, up 58% over 2009, thanks to interest revenues and cost control, according to the preliminary financial report released by the company. Robert Rekkers, the managing director of Banca Transilvania, said that in 2010, the company focused on healthy growth: "It was a difficult year, but in spite of this, BT has been going up in the ranks of the Romanian banking system. We have reached 1.5 million active customers and we have come up with a cautious development plan, adapted to the times. We have paid attention to adequate risk management, as we set up provisions in excess of what we were required. We have improved the correlation between our activities in order to better integrate the retail part and prudentiality ".
In 2011, Banca Transilvania intends to continue lending to the traditional sectors - industry, SMEs, agriculture, services. Robert Rekkers added: "2011 will be extremely challenging, amid an uncertain national and international economic context. We expect non-performing loans to peak, and margins to drop. However, we are ready, and the bank"s approach will be to continue to grow our business, focus on lending, increase market share, and adapt our offers to market conditions, together with a strict cost management".
The operating result of Banca Transilvania was 27% compared to last year, reaching 775 million lei, in 2010. The operating revenue of 1,487 million lei, up 15% over 2009, was due first and foremost to interest revenue, and from securities trading and commissions.
* Analysts: The earnings of TLV reflect a marked improvement of risk cost
"The earnings reported by Banca Transilvania in Q4 2010 are in line with our expectations and reflect a marked improvement in the cost of risk (due to the fact tha
