In the first half of 2014, the bank had net revenue of RON97.3 million.
Revenue from commercial activities increased 2%, to RON43 million, from RON42.3 million in the first half of 2014. The bank lowered its spending by 2.4%, to RON73 million, the lender said in a statement to the Bucharest Stock Exchange.
Gross lending declined 16.6% on the year in the first half, as the bank wrote off loans of RON217.6 million and recovered RON172 million, counterbalancing new financing that amounted to RON147 million.
Deposits declined 2.6% since the end of last year, to RON2.8 billion, taking the bank’s loan/deposit ratio to 43%, down from 51% end-2014, reflecting an excess liquidity of RON1.6 billion needed for further growth, the bank said.
The lender’s capital adequacy rate dropped to 8.1% end-June from 10.8% end-December, due to first half loss and provision costs.
On June 27 the bank announced it was starting exclusive talks with J.C. Flowers for a capital injection of RON110 million. Prior to that, the bank’s shareholders decided to cut its capital to cover losses and subsequently raise it back through a share issue.