Romania BCR 09 Net Pft At RON871.7M, Dn 43% YY

BCR, the Romanian unit of Austria's Erste Group, reported in 2008 a net profit of RON2.03 billion, including one-off earnings from the sale of its insurance business. Without the one-off items, BCR's net result in 2008 amounted to RON1.53 billion.

BCR Group's operating profit rose 32.1% on the year to RON3.26 billion (EUR772 million) in 2009, fueled by the 18% growth of the operating income combined with cost control measures, the bank said in a statement.

The net result was hurt by rising risk costs. BCR increased the net charge with risk provisions for loans and advances to RON2.28 billion, from RON628.6 million at the end of 2008.

"Q4 2009 saw a further increase of loan provisions though NPL (non-performing loans) growth has slowed. Customers continued to be under pressure as a result of unemployment and part time working and SMEs (small and medium-sized enterprises) also felt the effects of the strong economic slowdown," BCR said.

The financial data are un-audited, consolidated business results of Banca Comerciala Romana (BCR) Group as of December 31, 2009, according to IFRS.

The bank alone reported assets of RON64.53 billion, slightly up from RON64.5 at the end of 2008.

In 2009, the volume of aggregate loans to customers portfolio increased by 3.3% year-on-year to RON46.53 billion.

However, the retail loan portfolio (including micro businesses) fell 6.9% on sharp decrease in eligible demand and tighter risk management, the bank said.

Deposits from customers rose 7.4% to RON35.82 billion.

BCR opened 20 new retail branches in 2009, reaching a network of 661 outlets.

In 2006, Erste Bank bought a 61.88% stake in BCR, for EUR3.75 billion, from the state, the European Bank for Reconstruction and Development and International Finance Corporation. The Austrian group subsequently rose its stake to 69.3%, by taking over shares from BCR employees.

BCR group includes BCR bank, BCR Banca pentru Locuinte, BCR Administrare Fond de Pensii, BCR Leasing, BCR Asset Management, BCR Securities, Anglo Romanian Bank Limited and BCR Chisinau.

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