ING Bank Romania Eyes 10% Revenue Growth In 2010

Last year, the bank reported revenue of 695 million lei (EUR1=RON4.1287), up 30% on the year.

Negritoiu said lending activity is estimated to increase by 10% to 15% this year, from a 3% annual growth posted in 2009.

ING Bank Romania reported a net profit of RON84 million in 2009, down 20% from a year before, on higher costs with risk provisions.

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For 2010, the bank estimates a substantial increase in profit, fueled by lower provisions.

„The net revenue and profit will increase considerably. However, it’s probably too early to talk about a relief from provisions,” Negritoiu said.

Last year, ING booked provisions worth approximately RON250 million, with the total balance exceeding RON300 million at year-end.

„The provisions increased very much and we’ve reduced operating and personnel costs by 8%. We want to believe that the worse is behind us. We’ve booked as many provisions as we could to keep us insured,” Negritoiu said.

He said credit interests and margins are likely to decrease this year as banks will resume lending, but market demand will remain limited.

„The supply will no doubtfully still top the demand,” Negritoiu added.

ING Bank plans to expand its retail segment portfolio to over one million clients in 2010, the official said.