Banca Comerciala Romana ended the first quarter with a net profit of 1 million lei (about 200.000 euro), while in Q1 last year the bank posted a net loss of 10.2 million lei (2.3 milllion euro), according to a financial report released today. Although, there was a decline in total assets by 6.8 percent to 65.8 billion lei (some 14.76 billion euro) compared to March 31, 2013, BCR maintains leading market share by assets.
BCR Group has achieved an operating result of nearly 552 million lei (122.5 million euro), down by 2.8 percent year-on-year (YoY), on lower operating income, partially offset by a decrease in expenses.
Hence, the operating income in the first three months of 2013 has seen a reduction by 6.8 percent to some 914 million lei (203 million euro), likewise the operating expenses which were 12.4 percent lower YoY due to a more efficient and severe cost management. Based on that, the cost/income ratio improved, reaching 39.7 percent over 42.2 percent in Q1 last year.
Loan loss provisions narrowed, amounting to approximately 397 million lei after a 7.7 percent decrease YoY. The Non-Performing Loan ratio slightly increased to 30.2 percent due to the total contraction of loan portfolio, particularly corporate loans.
The volume of aggregate loans to customers decreased by 14.7 percent to 36.7 billion lei (8.2 billion euro) from almost 43 billion lei (9.7 billion euro) at three months in 2013 with new lending, impacted by weak demand, only partially balancing redemptions and loan book contraction.
BCR is member of ERSTE Group, the Austrian-based financial group and one of the largest financial services providers in the Eastern part of the EU in terms of clients and total assets. In its turns, BCR is Romania’s major financial group, its network consisting of 41 corporate business centers and 561 retail units.