BCR’s net profit shrinks in half to RON 305 mln in H1

BCR’s net profit reached RON 305 million in the first semester due to the operation results of RON 729.8 million which is higher by 3.6 percent compared with 2016, while the loan book expanded by RON 4.1 billion in the first semester of the year.

Compared to the same period last year, the net profit fell by roughly half mainly due to base effect from significant gain following the sale of certain stakes coupled with risk provision releases generated by recoveries from non-performing loans booked in the first half of 2016.

The NPL ratio decreased to 11 percent compared with 14 percent in June 2016, as a result of the sustained efforts to improve performing portfolio quality. The NPL provision coverage ratio improved to a level of 92.1 percent in June 2017.

Moreover, the expenses decreased by 7.6 percent compared with the same period of 2016.

The new loan production continues to be solid, which is RON 4.1 billion new retail and corporate loans on balance sheet. In bank corporate business, new volumes added on the balance sheet amounted to RON 1.5 billion.

“BCR today enjoys substantial capitalization, excellent liquidity and especially an unmatched expertise to support the most relevant projects for infrastructure financing, for servicing companies and, in general, to create trust capital in the economy,” said BCR CEO, Sergiu Manea.

Solvency ratio under local standards (BCR standalone) in May 2016 stood at 23.2 percent, well above the regulatory requirements of the National Bank of Romania (BNR).