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Romania’s SSIF Broker May Post RON70M Loss For ’08

Romanian brokerage company SSIF Broker Cluj-Napoca (BRK.RO) might post a 70.4 million lei (EUR1=RON4.2348) loss in 2008, after booking provisions worth RON72.4 million, due to the lower market value of the shares in its portfolio.
Andreea UnturicaBogdan Neagu
31 mart. 2009, 16:20, Economic

According to the company, registering the provisions in the company’s profit and loss account would rise the total expenses at RON89.6 million, leading to a RON70.4 million loss.

Prior to booking the provisions, SSIF Broker announced a RON1.3 million net profit for 2008, from RON38.3 million a year earlier, according to the preliminary results sent mid-February to the Bucharest Stock Exchange.

However, SSIF Broker’s profit might not be affected is the company registers its provisions in its capitals.

Romania’s National Securities Commission CNVM approved early-March an order to include the value adjustments for financial assets in the investment funds’ own capital, instead of the profit and loss account.

End-2008, SSIF Broker’s own capital totaled RON86.5 million, according to the information published on its website.

For 2009, the company eyes a RON852,000 profit and revenues totaling RON8.5 million, 2-fold lower from RON19.2 million a year earlier.

Meanwhile, SSIF Broker estimates total expenses of RON7.6 million for 2009, also 2-fold lower on the year.

The company’s managers plan to reduce this year’s salary costs by 42.5%, from RON3.4 million to RON2 million.

SSIF Broker has a share capital of RON144.7 million split into 289.4 million shares with a face value of RON0.5.

According to the most recent data, local businessman Ioan Cartis owns an 8.22% stake in SSIF Broker, while construction company Intervalco in Baia Mare town owns a 6.18% stake and the firm’s general manager Petru Prunea, a 3.5% stake.

On March 27, Prunea has been replaced from the company’s Board president position with Anton Ionescu.

The broker’s new Board president owns a 4.16% stake in SSIF Broker.

Last year, SSIF Broker ranked ninth among the 77 brokers operating on Bucharest Stock Exchange, with transactions totaling RON645 million and a market share of 3.66%.

In the second part of Tuesday’s trading session on the Bucharest Stock Exchange, SSIF Broker shares were traded at the price of RON0.111 per unit, up 8.82% on the day.