CEC Bank recorded a net profit of RON 432.97 million in 2018, its best result in 11 years

Aurel Dragan 11/06/2019 | 08:32

CEC Bank ended the year 2018 with a gross profit of RON 432.97 million, thus recording the best financial performance in the last 11 years, as a result of the successful implementation of the adopted strategies and the sustained efforts of the Bank’s employees.

In 2018, the loan portfolio of corporate clients increased by 13.1 percent compared to 2017, while at the level of the banking system this indicator registered an increase of only 6.8 percent. The bank also increased its portfolio to individuals, which increased by 7.3 percent.

The total volume of new credits granted grew by 5.34 percent, reaching RON 7 billion.

However, lending activity recorded a much higher growth rate than could be concluded on the basis of balance sheet balances as loans to customers operating in agriculture are granted and reimbursed in full during the year, partly as loans approved in 2018 and unused until the end of the year are not reflected in the balance sheet.

Continuing the policy of supporting the absorption of European Funds, the Bank financed by the end of 2018 a number of 48,046 eligible projects for accessing these funds, for which the sum of grants amounted to RON 13.9 billion.

The balance of deposits attracted from non-bank customers registered a 1.1 percent increase in 2018 compared to the previous year, given that the Bank has enough liquidity and has applied a policy of tempering the attraction of these sources. This result denotes once again that CEC Bank’s core values ​​- trust, honesty, stability – continue to be recognized and appreciated.

Throughout 2018, the Bank experienced a significant improvement in asset quality. Thus, the rate of non-performing exposures on loans and advances recorded at the end of 2018 a level of 6.01 percent, decreasing by 3.09 pp. compared to the level recorded on 31.12.2017. The rate of non-performing loans from loans to individuals, with a level of 1.96 percent as of 31.12.2018 (below the average of 4.81 percent in the banking system), reflects a high quality of the loan portfolio to individuals, decreasing by 0.95 pp compared to the level recorded on 31.12.2017.

The level of the total equity ratio was 17.3 percent as of 31.12.2018. The net value of the balance at the end of 2018 was RON 29.32 billion, down 7.4 percent compared to 2017, as a result of the decrease in the amount available to the NBR, in line with the level of minimum required reserves during the application period. This led to a decrease in the market share by volume of assets, from 7.41 percent at the end of 2017 to 6.51 percent at the end of 2018, while the bank maintained its position in the top 7 banks in the Romanian banking system.

“According to the assumed mission, CEC Bank will continue to support SMEs, agriculture, local public administrations and the population, paying special attention to the co-financing of projects funded by European funds. For 2019 we have proposed an increase in activity, especially in the area the bank has a gross profit of RON 153.2 million, significantly higher than the targets assumed for the period January-April 2019,” said Laurentiu Mitrache, General Manager – Chairman of the Board of Directors of CEC Bank.

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Aurel Dragan | 27/11/2023 | 17:41
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