Veneto Banca posts EUR 41.3 mln loss in 2015 in Romania

Veneto Banca, formerly known as Banca Italo-Romena, has posted losses of EUR 41.3 million in 2015. This comes in a line of three years of poor results, in which the bank accumulated some ER 90 million in loss.

Another subsidiary of Veneto Banca in Romania, specializing in real estate investments, Immobiliare Italo Romena, posted in 2015 losses of EUR 18.5 million. At the same time, the interest income of the branch amounted to EUR 664,000.

The mother bank, Veneto Banca in Italy, has been having trouble for the past years also, with losses amounting to over EUR 2 billion in 2014 and 2015.

Possibly anticipating an exit from the local market, the Romanian subsidiary changed its legal structure in 2014, switching from being a Romanian legal entity, Banca Italo-Romena, to being the subsidiary of an Italian bank, Veneto Banca.

The subsidiary has assets of around RON 4.5 billion, representing 1.2 percent of total banking assets, ranking in the top 15 banks by assets.

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The bank also has a total of 311 leasing contracts totaling EUR 34.3 million, taken from the former Italo Romena Leasing, which merged with Immobiliare Italo Romena. A share of 44 percent of the contracts are for automobiles and industrial vehicles, 37 percent for instrumental assets and 18 percent are real estate.

Veneto Banca had at the end of 2015 state securities in nominal value of EUR 13.2 million and a carrying amount of EUR 14.5 million.

The minimum reserves with the central bank had a value of EUR 90.5 million.

Natalia Martian