EBRD makes huge profit from Banca Transilvania

EBRD became the most important shareholder of Banca Transilvania in December 2001, upon acquiring 15 percent of the bank's capital. The European bank initially invested over €7 million in Banca Transilvania, and the 15 percent share package is now estimated to be worth €174 million.

Yesterday's market value of Banca Transilvania, the fourth-largest company listed on the Bucharest Stock Exchange (BVB), reached €1.158 billion.

Investors raised the lender's shares by 2.19 percent compared to the prior session, expecting positive results. "Banca Transilvania's shares increased yesterday due to results posted by other banks on the market. Investors were optimistic about these results, because the entire banking sector seems to have posted better-than-forecast results," Adrian Simionescu, General Manager of Finans Securities, told Business Standard.

EBRD is very pleased with its cooperation with Banca Transilvania, and will continue to sustain its growth and development as main player within the Romanian banking system, according to EBRD officials. The European Bank for Reconstruction and Development is one of the largest investors in Romania, allocating €3.5 billion for 230 projects. EBRD has assisted Romania to gain €6.4 billion worth of financing from foreign sources.

Banca Transilvania registered €25.4 million worth of net income in the first half of 2007, up 35 percent year-on-year, from €18.93 million, due to network and activity expansion. The bank's assets reached €3.15 billion by the end of June 2007, up 22 percent from last December, and 58 percent from H1 2006.

"We expect to meet the goals set at the beginning of 2007, and are confident in our ability to sustain growth with own means Robert Rekkers General Manager, Banca Transilvania