The improved performance is due to a reduced charge with provisions and includes a positive one-off effect from release of deferred tax liabilities during the second quarter, the bank said in a statement.
BCR said the net charge of risk provisions for loans was RON1.64 billion in January-September 2013, from RON2.64 billion in the same period a year ago, while the non-performing loan coverage ratio stood at 63.4% in September 2013, significantly above 57.2% a year earlier.
“Our turnaround efforts become visible with large scale business restructuring completed, NPL stock declining for the first time since 2008 and rebalancing of the loan book towards local currency well underway,” said Tomas Spurny, chief executive officer of BCR.
The bank’s operating profit rose 2.6% on the year to RON1.87 billion in the first nine months, backed by a decline in costs. Operating income inched 0.5% lower to RON2.99 billion, but the operating expenses were down 5.2% to RON1.12 billion.
As a result, the cost-to-income ratio improved to 37.5%, versus 39.4 in the first nine months of 2012.
BCR said it maintained leading market share by assets, despite the 7% decline in total assets to RON68.13 billion (EUR15.27 billion) as of 30 September 2013, from RON73.29 billion at the end of December 2012.
Solvency ratio under local standards stood at 13.4% at the end of September, well above the central bank’s regulatory requirements (min 10%).
“Under the conditions of a stable and predictable environment, we will increasingly be able to focus on healthy growth, searching for symmetry of risk and return. With RON 9 billion of capital, we find ourselves in solid position to grow and provide sustainable support to the economy,” said Spurny.