The bank’s operating profit rose 3.6% on the year to RON58.1 million, and was also 45% above budget.
The coverage ratio for non-performing loans was at 73.4% in December. The bank wrote-off RON121.4 million non-performing loans during September, and currently has a non-performing loan ratio of 38%.
According to Banca Carpatica, the quality of the loans generated during over last two years shows a current cost of risk below 2%.
“Carpatica Bank is at a stage where important and urgent decisions need to be taken by its current shareholders. While we have now well provisioned the bad loans of the past, the bank needs a change of its shareholding structure and new capital if it wants to achieve its growth strategy,” general manager Johan Gabriels said in a statement.
Shareholders authorized the bank’s management to increase the share capital, and will come up with new options in the meeting scheduled for April 28.
According to Gabriels, the capital increase can only be successful within a changed shareholder structure.
In December, Carpatica shareholders rejected Nextebank’s merger offer and authorized the bank’s management to hike the share capital by maximum RON155 million for a one-year period, by share issue related to subordinated loans convertible into shares.
The bank also said that shareholders owning the majority stake in Banca Comerciala Carpatica, businessman Ilie Carabulea and the affiliated parties, announced their decision to sell their stakes, while the other shareholders will approve either the merger with Nextebank or the share capital hike.
According to Mediafax information, the bank is also in talks with another two institutional shareholders which do not own lending institutions in Romania, thus, they cannot operate a merger.
In 2014, the bank’s assets fell by 20% to RON3.25 billion, in line with the bank’s strategy to reduce the portfolio of financial assets.
Banking income decreased by 1.3% to RON214.3 million, reflecting a reduction in gross loans by 4%.
Banca Comerciala Carpatica is listed on Bucharest Stock Exchange and is currently valued at RON195.07 million. (EUR1=RON4.4316)