COMPANIES ECONOMY

BCR posts H1 net profit of 603.4 mln lei

The Romanian Commercial Bank (BCR) posted a net profit of 603.4 million lei (135.7 million euros) after H1 2015, compared to a loss of 280.2 million lei in the similar period of last year, reads a BCR release issued on Friday for Agerpres.

According to the cited source, the profit came as a result of substantially lower risk costs following better quality of loan portfolio after the extensive restructuring of the balance sheet in 2014.

BCR became profitable after Q1 2015, when it posted a net result of 344 million lei (77.1 million euros). At end-2014, BCR announced losses of 2.8 billion, brought by substantially higher risk provisions, based on the decision to accelerate the settlement of the portfolio of non-performing loans.

On June 30, 2015, operating profit amounted to 778.5 million lei, down by 28.9pct compared to the similar period of the previous year.

In the retail banking activities, the sale of guaranteed loans increased by 34pct year on year.

The balance of performing retail loans stood at approximately 16.9 billion lei.

In the corporate activity, the newly-extended business loans amounted to 1 billion lei in H1, whilst the total volume of performing business loans amounted to some 11.9 billion lei, from 11.5 billion lei at end-2014.

The share of non-performing loans decreased to 23.1pct on June 30, 2015, compared to 29.3pct on June 30, 2014 and the coverage rate of these loans stood at 76.9pct, significantly above the level of 64.6pct in June 2014.

The deposits from customers went down slightly, by 1.5pct, to 39.30 billion lei (8.79 billion euros) on June 30, 2015.

According to the release, customers’ deposits remain the main source of funding for BCR, whilst the bank benefits from diversified financing sources, including the parent bank.

BCR offers a full range of financial products and services, through a network of 509 retail units based in most towns with more than 10,000 inhabitants all over the country, and through the 21 business centers and 23 mobile offices dedicated to companies. BCR holds the largest network of self-service banking equipment in the country – some 2,600 pieces of equipment (ATMs, foreign exchange machines etc) and 12,000 POS terminals for card payments at merchants.

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