UniCredit Tiriac Bank consolidated net profit at EUR 20 mln in 2013 on higher revenues

Newsroom 11/03/2014 | 18:14

UniCredit Tiriac Bank said Tuesday its net consolidated profit reached EUR 19.8 million last year, on the back of higher revenues and increased lending for SMEs and mortgages.

The results are based on the first consolidated financial statements for UniCredit Tiriac Bank and UniCredit Consumer Financing IFN on IFRS standards approved by the EU and applicable to Romanian lenders. The bank reported a net profit of EUR 40 million in 2012.

The consolidated operational income stood at EUR 337.8 million, while operational expenses amounted to EUR 164.5 million.

Rasvan Radu, the bank’s CEO, said in a statement: “Regarding the business environment in Romania, we expect a lower dynamics in GDP in 2014 compared to 2013, lending that is still limited and the profitability of the banking system that is still under pressure. Despite the economic conjuncture that remains difficult for the banking system, UniCredit Tiriac continues to focus on its presence in the market.”

The lender is set to take control this year of local leasing operations from the Holding, in a move that was approved earlier this year. Following the transfer, the entities that are directly or indirectly controlled will be included in the consolidation area this year.

Last year, the lender took over the majority stake in UniCredit Consumer Financing, while keeping its 20 percent stake in UniCredit Leasing Corporation. The bank has also purchased the retail arm of RBS.

The loan book of UniCredit Tiriac Bank amounted to EUR 4.2 billion (EUR 4.7 billion including outsourced loans). Lending for SMEs added 10.6 percent, and mortgages soared 18.4 percent, while mid-cap companies rose by 3 percent.

Loan provisions reached EUR 168.3 million and the non-performing loans stood at 11.08 percent, below the market average of 18 percent at the end of last year.   

Meanwhile, deposits reached EUR 3.4 billion, sustained by gains in both the retail and SMEs segments.

Its assets amounted to EUR 6.4 billion. The level of external financing attracted by UniCredit Tiriac Bank from the group and from international financial institutions rose by around 9 percent to EUR 1.9 billion.

The lender had a network of 188 branches, while the number of employees for the bank and UniCredit Consumer Financing reached 3,169.

Ovidiu Posirca

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