UniCredit Tiriac Bank profit drops 43 percent on Q3 to RON 122 mln

Newsroom 15/11/2011 | 16:45

The net profit of UniCredit Tiriac Bank, with assets worth EUR 5 billion, has totaled RON 122 million on Q3, which is a 43 percent decrease compared to the similar period of 2010. According to local accounting standards (RAS), the net profit totaled RON 153 million in the same period.

The banking income totaled RON 916 million (EUR 218 million), in the first nine months of 2011, which is a 10.4 percent reduction compared to the similar period of 2010. This was attributable to regulation and accounting adjustments that were implemented last year. Eliminating these adjustments, UniCredit has gained 1 percent in banking income by end-September 2011.

The net interest income of UniCredit has decreased by 18.4 percent in the first three quarters of 2011, while the commission and trading income increased by 9.3 percent.

UniCredit’s operational costs gained 6.2 percent, nine months into 2011, due to the impact of the annual inflation rate and regulations in the banking market. The cost income ratio of the bank reached 49.6 percent.

The solvency rate of UniCredit Tiriac Bank reached 11.2 percent on RAS standards, above the required level of the Central Bank. The percentage of provisions within the loans portfolio totaled 6.6 percent.

“The modest economic growth and the external uncertainty have impacted both the Romanian market and consumer’s behavior. In addition, we see a reduced appetite for risk and additional regulation at a global and local level”, commented Rasvan Radu, CEO, UniCredit Tiriac Bank.

The loans value present on the balance sheets of UniCredit increased by 16.5 percent to RON 15.5 billion (EUR 3.6 billion) at end-September 2011, compared to the similar period of 2010, while customer deposits reached RON 9.9 billion (EUR 2.3 billion) in the same period.

The banks assets registered an annual growth rate of 7 percent reaching RON 21.6 billion (EUR 5 billion). The consolidated assets of UniCredit Tiriac Bank, UniCredit Leasing Corporation and UniCredit Consumer Financing totaled RON 24.9 billion (EUR 5.7 billion) at end-September 2011. The net consolidated profit of the three financial institutions was RON 122 million, while the share capital was RON 2.4 billion (EUR 556 million) in the same period.

UniCredit Group is present on the Romanian market through UniCredit Leasing Corporation, UniCredit CA-IB Securities Romania, UniCredit CAIB Romania, UniCredit Insurance Broker, Pioneer Asset Management, UniCredit Consumer Financing (UCFin) and UniCredit Business Partner.

Ovidiu Posirca

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