Romania’s BCR 2010 Net Profit Falls 47% To RON465M

In 2009, BCR Group posted a net profit of RON871.7 million.

BCR, a unit of Austrian Erste Group Bank (EBS.RO), said operating profit declined 12.5% on the year to RON2.85 billion in 2010. The group's net operating income fell to RON4.52 billion, from RON4.97 billion in the previous year, largely due to lower revenue from interest rates.

"The revenue from interest rates decreased by 21.8% to RON6.91 billion, hurt by declining loan demand and increased competition," BCR said in its preliminary financial report.

It said net revenue from interests slid 2.3% on the year to RON3.75 billion in 2010, while net revenue from fees dropped 34.4% to RON464.4 million.

Operating expenses declined to RON1.67 billion, from RON1.7 billion in 2009.

Net risk costs stood at RON1.99 billion at the end of 2010, down 12.5% in the year. However, non-performing loans rose to 16.8% of total loans, from 13.1% of overall loans in December 2009.

"Non-performing loans remain burdening, although their formation has capped over the past months, due to lower interest rates, the relative stability of the national currency and on reduced unsecured lending provisions," BCR said.

The group's tier 1+2 capital ratio stood at around 12.8% in 2010, above the central bank's minimum requirement of 10%.

BCR's financial data are un-audited, consolidated and computed according to IFRS.

In 2006, Erste 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 raised 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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