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May 13, 2021

Erste Group: BCR back on profit this year

Erste Group anticipates in a  press release that its Romanian subsidiary, Banca Comerciala Romana (BCR) will be back on profit this year following a likely improvement of the risk situation in Romania expected to generate the decrease of risk-associated costs of the group by a two-digit figure this year. The BCR Group last year reported RON 1.2 bn (EUR 277 M) net loss and an operating result of RON 2.35 bn, close to 2011 levels. The negative annual result is a premiere for BCR, although, after the financial crisis had kicked in, the bank did report quarterly or half-year loss. Among BCR’s objectives there is first of all the gradual improvement of the quality of assets and general risk management framework, according to bank Chairman Tomas Spurny. BCR is not going to need any further restructuring measures additional to the already announced plan, most efficiency costs being reported against 2012, Erste Group CEO Andreas Treichl said, in turn, at a press conference held in Vienna, after presenting the Group’s financial results for 2012. The Erste official expects economic activity in Romania to be sustained by infrastructure projects. ‘Commitments have never been as solid as in the last few weeks and we can see that projects announced a long time ago are now under implementation. So, given all that, we are very confident in a positive trend in Romania in 2013. Nonetheless, it is far too soon to speak of any remarkable progress yet. It is too soon to speak of recovery,’ said the Austrian bank CEO.

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