Agricover Credit IFN, the lending arm of agribusiness group Agricover, said on Wednesday its net profit rose 8 percent to over RON 12 million (EUR 2.7 million) last year against the same period of last years, supported by a surge in lending activity to farmers.
The value of loans granted last year amounted to RON 642 million (EUR 145.2 million), while Agricover’s number of clients reached 1,300.
“The Romanian agriculture sector is developing at a steady pace, but remains underfinanced and this is where Agricover Credit IFN comes to help them grow,” said Robert Rekkers, general manager of the lender. He added that loans are granted for harvests, inputs, equipments, farm land acquisition or for farm extensions, in the vegetable and zootechnics field.
The lender opened last year its first regional subsidiary in Slobozia, in a move designed to support its expansion plans. Last year, the group has taken out EUR 15 million from the Black Sea Trade and Development Bank (BSTDB), out of which half went to the lending arm.
The lending arm has a capital adequacy ratio of 32 percent and the level of non-performing loans amounts to 1.2 percent.