BCR posts EUR 70 mln profits during Q1 2016

Banca Comerciala Romana (BCR) posted profits of EUR 70.2 million (RON 315.1 million) in the first quarter of the year, on the back of operational results of EUR 73.6 million (RON 330.6 million), according to its financial results released today.

The bank reported a drop in NPL from 25.6 percent in March 2015 to 19.5 percent this year. NPL coverage also improved, reaching 78.4 percent.

New loans to the population and companies during this period have posted at RON 2 billion, of which loans to retail clients reached RON 1.1 billion. Co-financing projects benefiting from European funds was also solid, BCR holding a market share of 33 percent and a portfolio of over RON 7.1 billion in co-financing granted.

Deposits from retail customers were down slightly by 1.9 percent to EUR 9.3 billion (RON 41.8 billion) at the end of March 2016, considering that the positive evolution of retail deposits was offset by a seasonal decline in corporate deposits. Customer deposits remain the main BCR funding source, while the bank benefits from diversified funding sources, including the parent company.

Operating expenses increased by 13.4 percent over last year, due to the booking of the contribution to deposit insurance fund for the full year in an amount of RON 14.5 million (EUR 5.3 million).

Net interest income decreased by 10 percent to EUR 102.2 million (RON 459.2 million) mainly due to new lending pricing structure, a mortgage loan re-financing campaign and lower unwinding.

Net fee and commission income increased by 5.7 percent to EUR 39.4 million (RON 177.1 million) due to higher fees from insurance brokerage business.

The increase in net trading and fair value result (up 42.2 percent to EUR 19.6 million) was mostly attributable to the revaluation of some foreign currency denominated participations.

Operating result declined by 1.8 percent (EUR 163.9 million) and the cost/income ratio deteriorated to 55.1 percent from 47.7 percent in Q1 2015.

BCR offers financial products and services through a network of 511 retail units located in most towns in Romania, as well as 21 business centres and 23 mobile offices dedicated to companies. BCR commands the largest Self-serving banking Equipment network in the country – about 2.600 equipment (ATMs, multifunctional machines, automated payment terminals, FX exchange machines) as well as 12.000 POS terminals for payments by card at merchants.

Natalia Martian

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