In January-September 2019, new loans granted on the private individuals segment (mortgage loans and personal loans) and micro-enterprises exceeded RON5.8 billion and new loans granted to companies exceeded RON5.4 billion, according to information included in the bank’s financial report.
Data on the stock of loans granted to the sector of the small- and medium-sized enterprises (SMEs) (including the BCR Leasing subsidiary), show it grew 13.9% compared with the year-earlier period, to RON5.9 billion (EUR1.3 billion) on September 30, as a result of laying more focus on new businesses and on developing the leasing sector. The real estate grew significantly, by 40%, compared with the same period in 2018, to RON2.2 billion (EUR460 million), as a result of new projects for the construction of office and retail spaces financed over the last year.
The lender released Wednesday the main financial indicators registered in the first nine months of 2019. BCR reported a net profit of RON348.8 million (EUR73.6 million), down 65.6% from a net profit of RON1,015.2 million (EUR218.2 million) in the year-earlier period, as a result of constituting an exceptional provision in the second quarter of 2019, in relation to the activity of the loan savings bank BCR – Banca pentru Locuinte (BpL), despite a solid operating result, low risk costs and high performance on all business lines.
Its operating result grew 7.8% to RON1,317.4 million (EUR278 million) in January-June 2019, from RON1,222.4 million (EUR262.8 million) in the same period in 2018, sustained by higher operating income and despite a higher contribution in 2019 to the Bank Deposit Guarantee Fund.
Net interest income climbed 11.1% to RON1,683 million (EUR355.2 million) in the first nine months of 2019, from RON1,515.1 million (EUR325.7 million) in the year-earlier period, amid higher interest rates and an increase in customer loans and deposits.
Net fee and commission income grew 9.1% to RON578.9 million (EUR122.2 million) in January-September 2019, from RON530.4 million (EUR114 million) in the same period a year before, mainly due to higher income from insurance-generated commissions and from foreign exchange transactions and investments in bonds of private individual customers.
Net trading result fell 22.9% to RON251.1 million (EUR53 million) in January-June 2019, from RON325.8 million (EUR70 million) in the first nine months of 2018.
Operating income grew 6.3% to RON2,587.4 million (EUR546 million) from RON2,434.7 million (EUR523.4 million) in the first nine months of 2018, mainly due to net interest income registered on the backdrop of higher interest rates and to an increase in loans and customer deposits.
General administrative expenses reached RON1,270 million (EUR268 million) in the first nine months of 2019, up 4.8% from RON1,212.3 million (EUR260.6 million) in the first nine months of 2018, mainly due to a higher annual contribution in 2019 to the deposit guarantee fund.
The cost/income ratio was 49.1% in January-June 2019, from 49.8% in the same period a year before.
Erste Group reported a net profit of EUR1.22 billion in January-June 2019, similar with the level reported in the same period in 2018, and operating income of EUR5.3 billion, up nearly 6% on the year.