Wood and Company - Banca Transilvania S.A. (TLV) WOOD Flash – Banca Transilvania: solid 3Q23 results, but spoiled, once again, by the Volksbank saga

Report

Wood and Company

Research Team

WOOD Flash – Banca Transilvania: solid 3Q23 results, but spoiled, once again, by the Volksbank saga

We remain positive on the overall Banca Transilvania (TLV) story, but we are rather neutral on the 3Q23 results, due mainly to the additional tax costs booked for the Volksbank saga, spoiling what would be, otherwise, solid results. We rate TLV a BUY, with a price target (PT) of RON 27.0/share, still offering 19% upside. On our 2024E estimates, the bank is trading at 6.1x P/E and 1.5x P/TBV.

14/11/2023 1 EN

Underlying

Banca Transilvania S.A.

See profile

ROTLVAACNOR1 Bucharest Stock Exchange Romania

Provider

Wood and Company

WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.

A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.

Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.

We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.

See profile

Analysts

Research Team

Other Reports on these Companies

Concorde Securities

Surprising Q1 on revenues, lower provisioning

BT’s reported net income came to RON 1,132 mln in the first quarter, up by35% and 63% y-o-y and q-o-q, respectively. Better results stemmed fromlower provisioning, higher revenues and a solid bargain gain from theacquisition of the BCR Chișinău S.A. Net interest income went up by 9% q-o-q and 24% y-o-y as a result of higherlending flows and higher NIM while net fees also increased thanks to strongclient activity. Net trading was also better after a weak Q4 due to higher incomefrom derivatives. OPEX increased 5% q-o-q on higher personal expenses and the newlyimplemented turnover tax. Despite ...

PREMIUM

May 17, 2024 May 17, 2024 4 EN

ING Financial Markets

EM Credit Spark/EM credit weekly

After some relief for markets on the data front this week, a period of quiet in terms of macro news should offer a further window for new supply to come from EM issuers ahead of an expected summer lull. Spread levels remain well anchored and EM credit should continue to see robust demand from yield-seeking investors.

EUR 91.90

May 17, 2024 May 17, 2024 1 EN

Wood and Company

WOOD Flash – Banca Transilvania: NIM resilience and strong loan book expansion the key positives of 1Q24 bottom-line beat

Overall, we see the bank’s 1Q24 results as positive. Despite the core pre-provision profit coming in largely in line with our expectations, we view the resilience of the NIM and the strong loan book expansion as constructive. The bargain gain was a positive surprise and, together with the very low COR, provided most of the c.27% bottom-line beat vs. our expectations.

May 17, 2024 May 17, 2024 1 EN

WOOD Daily: CZ Banks; ALARABIA AB; GEV CP; EME Macro/Strategy Weekly; CAR PW

HEADLINES: • Czech banks: special sector levy headlines continue to flow NEGATIVE • Al Arabia Outdoor Advertising: 1Q24 interim financial results POSITIVE • GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate POSITIVE • EME Macro/Strategy: macro all-in-one (13-19 May) • Inter Cars: 25% yoy 1Q24E EBITDA decline, on top line and FX-related gross margin weakness (due on 22 May) • Short News (DAT, OTE)

6h / 38m 6h / 38m 1 EN

Alessio Chiesa ... (+2)

Alessio Chiesa
Raffaella Tenconi

EME Macro/Strategy: macro all-in-one (13-19 May)

Last week's macro news flow in our region was driven by Georgia: despite the widespread protests, parliament passed the contentious "foreign agent" law, followed by the presidential veto over the weekend, which is likely to be overruled by Georgian Dream, the ruling party. Romania's GDP growth presented mixed signals, with a modest uptick in the adjusted annual growth, but a slowdown in unadjusted terms, suggesting cautious optimism for future rate cuts by the NBR. Poland's economic growth decelerated slightly, affected by weak consumer spending, although our projections remain positive. The i...

7h / 2m 7h / 2m 1 EN

Peter Palovic

Peter Palovic

WOOD Flash – GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate

On 15 May, GEVORKYAN reported better-than-expected results, with EBITDA of EUR 7.3m (+24% yoy), a 17% beat vs. our estimate of EUR 6.2m. The revenues were up by 31% yoy, at EUR 24.2m, a 10% beat vs. our expectations. Management has reiterated its guidance for 2024E but, if the 2Q24E results are above the company’s plan, it could upgrade its guidance. In 1Q24, GEVORKYAN delivered an EBITDA margin of 30%, 2ppts higher than we anticipated. For 2024E, we are more conservative on the operating profitability and we expect a 28% EBITDA margin, while the company is guiding for 30%. If delivered succes...

May 17, 2024 May 17, 2024 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

WOOD Flash – Banca Transilvania: solid 3Q23 results, but spoiled, once again, by the Volksbank saga

Surprising Q1 on revenues, lower provisioning

EM Credit Spark/EM credit weekly

WOOD Flash – Banca Transilvania: NIM resilience and strong loan book expansion the key positives of 1Q24 bottom-line beat

WOOD Daily: CZ Banks; ALARABIA AB; GEV CP; EME Macro/Strategy Weekly; CAR PW

EME Macro/Strategy: macro all-in-one (13-19 May)

WOOD Flash – GEVORKYAN: 1Q24 – strong set of results, with EBITDA up 24% yoy, 17% above our estimate

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe