BT and Bancpost’s growth exceeds by five times that of the market

As such, while Romanian banks enjoyed an average 32 percent increase in profit, to €825 million from €625 mln, the net profit of the two local players soared by 300 percent, as they focused on small and medium-sized enterprises (SME) and retail, respectively.

Banca Transilvania posted a net profit of €94.3 mln in 2007, 183 percent higher year-on-year, or approximately 3 times more than the 2006 results, while its assets increased by over 70 percent, to €3.84 bln, according to preliminary results submitted Wednesday to the Bucharest Stock Exchange (BVB).

BT consolidated its position last year on the lending market, with loans granted worth €2.5 bln, of which 59 percent were loans for companies, and 41 percent were individual loans. “In 2007 we met an important objective, namely that of having one million active clients,” said Banca Transilvania’s General Manager, Robert C. Rekkers.

Bancpost’s preliminary net profit in 2007, according to international financial reporting standards (IFRS), was €29 mln, four times higher year-on-year, while the bank’s assets advanced in real terms by 60 percent, to €3.7 bln, according to a declaration by the bank’s President, Mihai Bogza. Its loan portfolio, excluding externalized loans, amounts to a total of €2.3 bln, up in real terms by 70 percent compared to loans by the end of 2006. Its loans for individuals rose by €1.3 bln, up over 90 percent in real terms.

Last year, Romanian bank had a cumulated net profit of €825 mln, up 32 percent year-on-year, according to data reported by lenders to the Central Bank. Over 50 percent of the net profit within the banking system belongs to BRD-Groupe Societe Generale and Banca Comerciala Romana (BCR).

Similarly, banking system assets rose 45 percent, to €70 mln.