The operating result improved by 18.2% to RON2.32 billion (EUR470.7 million) on the back of higher operating income, partly offset by increased operating expenses.
In parallel, net interest income went up by 27.0% to RON2.67 billion (EUR540.7 million), driven by higher business volumes and market rates.
Net fee and commission income improved by 4.4% to RON723.9 million (EUR 146.6 million) in 1-9 2023, from RON693.3 million (EUR 140.5 million) in 1-9 2022, driven by increased fee income from corporate lending as well as higher securities fees.
Net trading result dropped by 11.3% to RON401.5 million (EUR 81.3 million) in 1-9 2023, from RON452.9 million (EUR 91.8 million) in 1-9 2022, on lower trading activity.
Operating income increased by 15.5% to RON3,838.6 million (EUR 777.2 million) in 1-9 2023, from RON3,324.5 million (EUR 673.7 million) in 1-9 2022, driven by higher net interest income as well as higher net fee and commission income.
NPL ratio remained stable against previous quarter at 2.7% as of September 2023, slightly below 2.8% recorded as of December 2022. This evolution is reflecting the recoveries and healings in both retail and corporate segments which counterbalanced the regular new NPL formation. At the same time, the NPL provisioning coverage reached 187.8% as of September 2023.
In retail banking business, BCR generated total new loans to individuals and micro businesses of RON6.5 billion in 1-9 2023, with a 40% year-on-year increase in the loans stock for micro-enterprises. The stock of standard mortgage loans (Casa Mea) in local currency increased by 3.5% yoy, while the stock of unsecured consumer loans (including credit cards and overdrafts) increased by 5.7% yoy.
In corporate banking business, BCR approved new corporate loans of RON 8 billion in 1-9 2023, of which approximately 30% are aimed for investments. The stock financing granted by BCR Bank to the SME sector increased by 4% year-on-year as of 30 September 2023.
The total BCR Leasing financing portfolio granted to customers amounts RON3.97 billion (EUR805 million), with a 22% increase in new financing compared to 1-9 2022. With a dynamic customer portfolio and a strategy to support electromobility, which encourages the purchase of electric cards, BCR Leasing registered a 60% increase in sales volume for green financing in Q3 2023.
Solvency ratio for BCR Bank standalone, according to the capital requirements regulations (CRR) stood at 23.1% as of August 2023, well above the regulatory requirements of the National Bank of Romania. Furthermore, the Tier 1+2 capital ratio of 21.9% (BCR Group) as of June 2023 is clearly reflecting BCR’s strong capital and funding positions.
Net loans and advances to customers increased by 2.4% to RON56,674.3 million (EUR 11,395.3 million) as of 30 September 2023 from RON55,328.5 (EUR 11,178.6 million) as of 31 December 2022, supported by both retail and corporate segments.
Deposits from customers slightly increased by 1.5% to RON76,708.4 million (EUR 15,423.4 million) as of 30 September 2023 from RON75,588.5 million (EUR 15,271.9 million) as of 31 December 2022, supported by the increase in both retail and corporate deposits.
(English version by Catalina Apostoiu)