Bancpost posts EUR 5.7 mln profit in Q1

Newsroom 21/05/2015 | 13:35

Bancpost reported a net profit of RON 25.2 million (EUR 5.7 million) in the first quarter of 2015, reads a bank’s press release. On the background of increased operational income by 7 percent versus the first quarter of 2014 as well as a cost base readjusted to ensure the bank’s long-term sustainability, Bancpost has improved its profits before loans provisions by 145 percent.

Accelerated NPL management process undertaken in Q4 2014 drew results in both retail and corporate sectors. The ratio of NPL on total portfolio has decreased to 16.3 percent from 21 percent in Q1 2014.

Operational expenses have decreased by 16 percent over the past year as a result of the branch network’s reshape, the cost/income ratio having decreased by 20 percent.

Bancpost’s loans and deposits volumes stayed constant compared to Q1 2014 whilst the loans/deposits ratio remained sub unitary, at a level of 84 percent. The bank has optimized its funding sources through the active management of the retail deposits portfolio as well as through attracting a high volume of financing from the international financial institutions (EBRD, IFC, EIB).

At the end of Q1 2015, the solvency ratio was approximately 18 percent, 3 percent higher than the banking system’s average and 8 percent above the regulatory requirements.