BCR reports EUR 110 million net profit for 2010, increases market share

Banca Comerciala Romana BCR reported for last year operating results amounting to EUR 676.4 million, down 12.5 percent on 2009 in a continuing very difficult economic context. Operating income declined by RON 444.9 million or 9.0 percent on 2009 mostly due to diminished net income from interest, fees and trading, as a result of market conditions: reduced interest rates, low eligible demand, lower transaction volumes and the impact of OUG 50 implementation. For the same period operating expenses were reduced by RON 36.8 million or 2.2 percent year on year. Net profit after taxes and minority interests amounted to RON 465.0 (EUR 110.2 million) down by 46.7 percent on 2009 mainly on still high provision expense due to the continuing difficult market conditions heavily impacting BCR’s customers.

BCR (the bank only) slightly increased its market share in lending to around 22.2 percent over the last year due to a good performance in corporate lending which resulted in an improved position in this segment (up 1.2 pp year on year) and a modest increase in housing loans (+0.2 pp year on year). On deposits BCR holds around 20 percent of personal individual deposits in Romania, based on competitive pricing and the strength of the BCR brand – the most trusted banking brand in Romania. The retail business is self–funding, retail loan to deposits (LTD) ratio standing at around 78 percent, according to local standards. The bank has strong liquidity and a sound capital base well above regulatory minima.

“2010 has been a very difficult year for our customers and therefore for BCR. As expected, the results are heavily impacted by the continuing difficult market conditions in Romania: the economy was subject to a significant austerity programme and VAT rise – the effects of which are still being felt, said Dominic Bruynseels, BCR CEO. We continue to provide support for our customers, to improve the way we serve them and operate our business. The increase in our market share demonstrates our commitment to look for ways to help Romania return to a growth path, ” Bruynseels added.