UniCredit Tiriac Bank posted a RON 64 million net profit (EUR 16 million) in the first quarter of 2010, according to IFRS standards, 50 percent down on the level posted in the same period of 2009. This was attributed to the stagnant market and increased credit risk. The bank’s net profit, according to RAS standards, was RON 61 million in the period, and the lender registered an ROE of 11.5 percent and ROA of 1.3 percent. It also posted RON 310 million in incomes in Q1 2010, a decline of 8 percent on Q1 2009. Operational expenses fell by 3 percent while the cost/income ratio improved to 44.9 percent. “The market context was difficult for the banking system, while the local economy remained in recession during the first quarter. The credit risk continued to increase, based on a growing number of cases where companies were not able to pay. We believe that our evolution is satisfying in such conditions and we expect the signs of recovery in the second half of the year,” said CEO Rasvan Radu.
The total volume of assets reached RON 20 billion (EUR 5.1 billion), an increase of 8.5 percent on the end of March 2009 and the same level as at the end of last year. UniCredit also launched a financing and advisory business line. It includes structured financing activity, syndicated transactions, real estate financing, European funds, factoring and consultancy services.