UniCredit Tiriac Bank sees net profit decrease by 15 percent in the first nine months

Newsroom 10/11/2010 | 15:29

UniCredit Tiriac Bank registered EUR 52 million net profit in the first three quarters of 2010, 15 percent less on the same period of 2009, announced bank representatives.

“Fiscal consolidation measures implemented earlier this year, although necessary, have had a negative impact on consumption, investments and the economy in general. The prolonged recession and shrinking incomes have severe effects on the banking system, on the quality of assets and incomes”, said Rasvan Radu, CEO of UniCredit Tiriac Bank.

The lender also reports a 15 percent revenue increase (EUR 245 milion) and a cost-to-income ratio of 41.8 percent. Operating expenses went up by by 1 percent.

At the end of September the bank was managing assets worth EUR 4.7 billion, 1.2 percent more than in September 2009. The loan portfolio amounted to EUR 3.1 billion, 13 percent more against the first three quarters of 2009 while deposits reached EUR 2.2 billion.

Credit risks continued going up yet remained under the system average, said bank representatives. Over 90-day on-balance sheet defaulted loans reached 11.5 percent. Related provision coverage grew up to 7.1 percent under IFRS (International Financial Reporting Standards).