BCR returns to profit in 2013 on improved operating result

Following the loss of nearly 277 million euro in 2012, BCR has recorded a major advance last year, posting a profit of some 134 million euro on a significantly better operating result which balanced the costs related to risk provisions that are still high. Although there was a decline by 8.9 percent in total assets which dropped to around 15 billion euro, BCR has preserved its market share, remaining the leading bank in Romania.

The banking group’s financial report shows that the operating result incremented by 5.6 percent, totaling about 563 million euro compared to some 530 million in 2012, despite lower income in the interest segment and a slight decrease of 1.2 percent in the operating revenue. However, the operating costs have been much reduced, amounting to approximately 340 million euro, down almost 11 percent over the previous year, due to a more efficient and severe cost management. Based on that, the cost/income ratio improved, reaching 37.6 percent compared to 41.6 percent in 2012.

BCR has managed to substantially reduce the loan loss provisions which diminished by 41.2 percent, coming to almost 483 million euro compared to 813 million euro in 2012.The Non-Performing Loan ratio maintained stable at 29.2 percent, its coverage improving to 65.8 percent (year-end 2012: 58.6 percent).

“Our priority in 2014 is to maintain a healthy business growth, with a dedicated focus on being more efficient and improve our customer-oriented competence through better internal operations. We still need to face the important challenges that arise, and not least, reducing the NPL stock in the context of a promising economic growth which is still not reflected into a stronger demand for loans”, Tomas Spurny, BCR’s CEO, said.

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.