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November 27, 2021

CEC Bank posts 27 pc net profit increase for 2011

The bank needs capital for a stronger development in the future, CEC Bank President Radu Gratian Ghetea said.

Year after year, since 2007, CEC Bank is continuously developing at a growth rate beyond any expectation, and probably is the top banking institution with regard to extending loans for the co-financing of projects made with European money, the president of the bank, Radu Gratian Ghetea said yesterday in a press conference dedicated to the activity during 2011. “The project that started in 2007 has been achieved: the 2007-2011 development strategy that sets as main objective turning CEC, a savings bank, into a universal commercial bank. We say that the project which started in 2007 has been achieved,” Ghetea stated in the opening of the event.At the end of 2011, the bank maintained its 4th place among Romanian-based banks, in terms of market share and assets. On May 4, it increased its social capital by approximately RON 44.2 M, to little over RON 1 bln (RON 1,091.9 M).For last year, CEC Bank reported a net profit of RON 67.4 M, up 26.6 pc against 2010, driven by a 7.3 pc advance of loans to RON 10.3 bln, and a double growth rate of assets (+14.3 pc) to RON 24.8 bln, Ghetea mentioned. “CEC Bank increased its market share from 4.03 pc in 2006 to 6.99 pc in 2011. The solvency rate is 17.06 pc, above the levels imposed by BNR regulations (minimum 10 pc),” Ghetea explained, adding that the bank needs capital for a future development.The deposits attracted by the bank amounted to RON 17.6 bln, 16.6 pc more than in 2010, against an average growth rate of 9.5 pc in the banking system, mainly driven by the increase of deposits attracted from individual customers (14.5 pc), which proves the confidence of customers in CEC Bank, Ghetea added.

Loans evolved as expected, with corporate customers slightly exceeding 50 pc of the total

CEC Bank granted 20,449 new loans in 2011, of which 19,203 were agricultural loans and 1,208 were extended to local administrations and authorities. “We want to finance the activities that can be sustained and create new jobs, which has always been one of our objectives,” Ghetea said. According to the CEC president, the loans extended to legal entities amounted to about RON 11.5 bln last year. “In CEC Bank, the structure of the loan portfolio for legal entities, based on activities at the end of 2011, is somehow balanced, respectively agriculture, commerce, constructions, industry and services,” Ghetea added.As the conference was nearing its end, the CEC Bank president also referred to the bad or doubtful loans, which represented 9.6 pc of the portfolio. Ghetea explained that “over 70 pc of CEC Bank customers which had their loans restructured now perform well.” “Bad loans worth EUR 5 bln left the Romanian banking system these years, as these sums represented outstanding loans that were sold to companies outside Romania. CEC Bank did not sell RON 1 of its bad loans. In our case, bad loans accumulate, without the possibility of an opening,” the president said, explaining why CEC Bank has a higher percentage of bad and doubtful loans than the banking system average.

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