UniCredit Bank sees double profit on the year at RON 108.7 mln in Q1

UniCredit Bank posted a net profit of RON 108.7 million (EUR 24.3 million) in the first quarter of the year, double (up 106 percent) the result recorded in Q1 2015, according to its financial results.

The bank registered consolidated operational revenues of RON 393.3 million (EUR 88.1 million), up 5.5 percent versus last year’s similar period, mainly driven by higher volumes of loans and deposits.

UniCredit Bank’s operational expenses totaled RON 198 million (EUR 44.3 million), leading to an operational profit of RON 195.3 million (EUR 43.7 million) in the first quarter of 2016.

“The results registered in the first three months of the year prove that we are heading in the right direction: compared to the same period last year, in March 2016 the number of customers increased by 12 percent. Also, the corporate division has kept the strategic directions from 2015, with focus on financing the real economy, improving products’ portfolio and increasing client satisfaction. In the context of market liquidity company deposits increased by 47 percent in comparison to March last year, while corporate crediting increased by 11 percent within the same period,” said Rasvan Radu, country chairman UniCredit in Romania and CEO of UniCredit Bank.

At the end of March the bank had loan provisions of RON 28.7 million (EUR 6.4 million), with a coverage for on-balance sheet loan portfolio of 8.46 percent. The annualized cost-of-risk was 106 bp, while the NPL ration reached 14.74 percent.

With a strong evolution in corporate financing, consumer loans, and leasing financing, the bank had a gross loans portfolio (including loans granted by leasing) amounting to RON 24.3 billion (EUR 5.4 billion). At the same time, customer deposits reached RON 17.9 billion (EUR 4 billion).

UniCredit Bank registered a solvency ratio of 13,8 percent at the end of March.

UniCredit Consumer Financing, member of UniCredit Group, saw double sales in consumer financing over Q1 2015, while the number of issued cards rose by 40 percent.

UniCredit Leasing also registered positive results during this period, with a volume of new financing granted of EUR 79.3 million, while the acquisition value of financed goods amounted to EUR 95.4 million.