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(Updates with chairman comments in third paragraph.)
Feb. 1 (Bloomberg) -- Banca Transilvania SA, Romania’s second-largest publicly traded bank, said its 2011 profit rose 35 percent on higher lending as the cost of bad loans declined.
Net income increased to 131.9 million lei ($40 million) from 97.5 million lei a year earlier, the Cluj-Napoca Romania- based bank said in a statement sent to the Bucharest Stock Exchange. The cost of bad loans fell 17 percent to 532 million lei throughout the year from 640 million lei a year earlier, the bank said.
“We are happy that we exceeded our budgeted forecasts, confirming the positive trend of the bank’s activity,” Horia Ciorcila, the bank’s chairman said in the statement. “We are well prepared for 2012 and we’ll continue to grow prudently and healthy.”
Banca Transilvania increased total lending by 15 percent last year to 15.4 billion lei while operating revenue was little changed at 1.5 billion lei, according to the statement.
Net assets grew 19 percent to 25.7 billion lei from 21.6 billion lei at the end of 2010, the lender said. Non-performing loans, fuelled by a slow economic recovery in the country, amounted to 8.6 percent of lending at the end of December, according to the statement.
Robert C. Rekkers, Banca Transilvania’s chief executive officer resigned on Jan. 20. The bank appointed Peter Franklin as interim manager.
Banca Transilvania’s shares rose 2.5 percent to close at 1.02 lei in Bucharest yesterday, valuing the bank at 1.8 billion lei.
--Editor: Tim Farrand
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