BCR posted a net loss of 2.8 billion lei (EUR630 million) for 2014, compared with a profit of almost RON600 million in the previous year.
Risk provisions more than doubled to RON4.4 billion in 2014, “driven by ample efforts to reduce NPLs, including portfolio sales and write-offs,” BCR said in a statement Friday.
In 2014, BCR sold non-performing loans amounting to RON2 billion, reducing thus its NPL volume by 24% year-on-year. “NPL ratio decreased to 25.7%, NPL coverage ratio increased at 75.8%,” it said.
BCR registered an operating result of RON1.9 billion (EUR430.8 million), 19.3% lower than RON2.4 billion in 2013, driven by weaker operating income and partly compensated by lower costs, the statement reads.
Net interest income was down 17.5% to RON2.29 billion, on the back of accelerated NPL portfolio resolution, a lower interest rate environment and efforts to price competitively in the market, while the net fee income was 4.9% lower on the year, at RON711.3 million, due to lower fees from loan management and current accounts.
The operating income decreased by 15.3% to RON3.39 billion, but general administrative expenses were also down to RON1.47 billion, 9.4% lower from 2013. As such, cost-income ratio advanced to 43.5% in 2014, versus 40.7% the year before.
Deposits from customers grew 6.6% to RON39.92 billion, from RON37.44 billion as of end December 2013, remaining BCR’s main funding source.
Last year, BCR booked on new loans in amount of RON7.4 billion, on the back of solid growth in retail and stabilization of corporate book.
At the end of 2014, BCR’s total assets stood at RON61.62 billion, down 7.6% from RON66.72 billion in December 2013.