Romanian BCR Group, owned by Austrian Erste and the largest lender in Romania by assets, posted a net loss of EUR 277 million last year, when its provisions went up by 68 percent, to some EUR 813 million. The loss is a first for BCR, which has only posted partial losses so far, never a year-long loss.
“We’re eagerly anticipating the transformation of our bank and of our future. This started in 2012 and will continue in 2013. Our objectives are clear, target the improvement of the quality of our assets and the general risk management. At the same time, optimize the quality of our business model, by re-organizing our business departments, our agencies network and simplifying the operational model,” said Tomas Spurny, president of BCR.
The bank’s operational revenues were down 2.2 percent to some EUR 906 million, while operational expenses, of some EUR 377 million, were down 0.8 percent. The drop in operational revenues was mainly caused by the weak demand for consumer loans, as well as by the low level of investment loans and work capital for companies. The bank saw its revenues from interest dropping by 7.6 percent in 2012, to some EUR 648 million. The net revenues from commissions however increased, by 9.4 percent, to EUR 142 million.
The rate of non-performing loans was of 26.7 percent of the total loans portfolio end 2012, while the solvability rate was of 12.4 percent in December, above the 10 percent minimum requested by the Romanian Central Bank.
BCR had loans of EUR 11.9 billion, down 0.2 percent on the end of 2011, while deposits stayed at EUR 8.5 billion, a drop of 4.5 percent.
(photo source: Erste Group)