In 2011, BCR reported a net profit of RON70.9 million.
BCR said its operating profit fell just 3.3% last year, to RON2.36 billion, but the bottom-line was hurt by a 68.3% rise in risk costs. The net charge of risk provisions reached RON3.63 billion at the end of 2012, versus RON2.15 billion in the year before.
The operating profit fall was mainly driven by lower net interest income and partially offset by costs decrease, increased net fee income and improved net trading result, the bank said in a news release.
Operating income dropped 2.2% on the year to RON4.04 billion, while operating expenses were down 0.8% to RON1.63 billion, despite “significant restructuring charges,” BCR said.
“We are looking forward to changing our bank and future. The process has started in 2012 and shall continue throughout 2013,” said Tomas Spurny, the banks’ chief executive officer.
“Our objectives are clear, first and foremost we aim to gradually improve asset quality and overall risk management framework. In parallel, we are seeking to improve the quality of our business model through reorganization of business units, branch network and overall simplification of the operating model.”
The bank’s assets went down to RON73.29 billion at the end of 2012, from RON76.75 billion a year earlier. However, BCR remains the largest Romanian bank by assets, with a market share of 19.3%.
The solvency ratio stood at 12.4%, above the central bank’s minimum requirement of 10%.
The financial data are un-audited, consolidated business results of Banca Comerciala Romana (BCR) Group for the full year 2012 according to the International Financial Reporting Standards (IFRS).