Banca Transilvania shares jump 3% on Stock Exchange

In the first nine months of the year, Banca Transilvania announced a 69.7 million-RON profit, up 44%. Yesterday shares kicked off the trading session in full gear, rising by 3%. Analysts say financial results are above expectations, saying there is potential for the bank to report a 20-30% profit rise in 2011.

The 44% profit increase against the first nine months of last year generated enthusiasm among investors, although analysts believe the profit increase was mainly driven by the bank's exchange rate operations rather than by an increase in lending.
"A comparison between the third-quarter performance and the previous quarter one reveals that there have been no major changes in the bank's business. The profit increase in the first nine months mainly has to do with a lower tax on profit, 9% in the third quarter, given that part of the provisions set up were tax deductible," said Adriana Marin, manager of the research department with brokerage firm CA IB Securities.