The bank’s management suggested that the substantial loss of 2011 be carried over in 2012 and covered from the 2012 profit, from the profit of the previous years and from the existing reserves on December 31, 2012. A decision on how to do it will be made by the general meeting of shareholders scheduled for April 23.
BCR’s credit risk profile became medium-to-high last year, according to the annual report of its board, as the loan portfolio took the brunt of the crisis. The bank had loans rated as “doubtful” and “loss” of more than RON9.7 billion at the end of 2011, up 11% on 2010.
Non-performing loans increased at a faster rate than the loans granted to customers, so that their share in the total went up from 21% in 2010 to 22.5% in 2011.
Credit risk provisions rose by more than 26% to RON7.2 billion.
Other than provision cost, BCR also saw its main stream of revenue, net interest income, go down to 65.8% of the operating revenue, compared with 71% in 2010.
(English version by Loredana Fratila-Cristescu)