CEC Bank – corporate credit portfolio up 32 pc in 2012

The gross profit was RON 33.5 M, making CEC Bank one of the profitable lenders in the Romanian banking sector for the seventh consecutive year, bank President Radu Gratian Ghetea said.

In 2012, CEC Bank managed to reach its number one objective – increase the portfolio of credits given to legal persons, bank President Radu Gratian Ghetea told a press conference yesterday. The rise of the indicator was by 32 per cent compared to 2011 and the bank’s assets were up 8.5 per cent (compared to a general rise of assets in the entire banking system of 3.4 per cent). ‘This positive trend came mainly from the increase of sources attracted from the local market (10.2 per cent), which enabled a growth by 15.5 per cent of the balance of loans to customers, considerably above the banking system average of 1.5 per cent’, he further noted. In a difficult year, the bank managed to keep its forth place in the standings of Romanian banks in terms of assets, with a market share of 7.35 per cent. ‘We are already in a phase of consolidation of the results obtained so far by efficiency, improving service quality and finding new ways to develop, adjusted to current realities’, the president of CEC Bank continued.
He also stressed that the structure of the credit portfolio had changed in correlation with the bank’s strategy and mission, therefore the share of loans given to legal persons in the total portfolio in 2006 was 21 per cent and in December 2012 – 63 per cent, amidst an almost four-fold lending rise during that period. Faithful to its strategic objective of supporting the mobilisation of European funds, CEC Bank had financed by the end of 2012 approximately 15,653 projects eligible for obtaining European financing for which the combined values of the grants amounts to over RON 5,023.38 M.
The president of CEC Bank further mentioned the bank’s net profit in 2012 was RON 33.5 M, CEC remaining one of the profitable banks in Romania last year, for the seventh consecutive year. The rate of bad loans of 19.50 per cent is still close to the banking system average, CEC Bank having not sold any such loans so far. The solvability rate at the end of 2012 was at a comfortable 15.90 per cent, above applicable BNR regulations (minimum 8 per cent) and better than the banking system average (14.64 per cent).
Also in 2012, Ghetea said CEC Bank managed to grow the number of individual customers by approximately 100,000 and the number of corporate customers by approximately 15,000, which is an indication of the better service quality and growing confidence in Romania’s oldest bank.
Ghetea also announced that this week CEC Bank and the Bank of Development of the Council of Europe will sign a loan agreement for EUR 25 M for the financing of investment projects conducted by SMEs and local authorities.
Answering a question, Ghetea, also president of Romanian Banks Association (ARB), said the possible sale of Greek banks present in Romania, following the pressure put by the Troika on Hellenic lenders, would not influence the Romanian banking sector in any way.

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