In the first nine months of 2011, BCR reported a net profit of RON67.6 million.
BCR, a unit of Austria’s Erste Group Bank AG (EBS.RO), said net charges for bad loans provisions rose 63.8% on the year to a record RON2.63 billion, reflecting “a continued weak performance of the Romanian economy on corporate and real estate business.”
End-September, non-performing loans amounted to 25.8% of BCR’s loan portfolio.
Operating profit slid 3.5% to RON1.82 billion in January through September, from RON1.89 billion in the year-earlier period.
The bank said operating income fell 4.5% on the year to RON3 billion, largely due to weak consumer credit demand and a 10.2% decrease in net interest income. Net fee income rose 7.1% year-on-year.
Operating costs decreased 6.1% to RON1.18 billion in the first nine months.
For the third quarter alone, BCR said its operating profit increased 3.8% on the quarter to RON618.3 million, supported by higher revenues and firm cost control measures.
“BCR delivers its first quarter of improved operating performance. This achievement reaffirms our commitment to return to profit in the next few years,” BCR’s chief executive officer Tomas Spurny said.
The group’s tier 1+2 capital ratio reached 13.23% in September, well above the central bank’s minimum requirement of 10%. Solvency ratio was 17.59%.
BCR Group reported total assets of RON76.37 billion, down 0.5% from RON76.7 billion in December last year.
The group’s financial data are un-audited, consolidated and computed according to IFRS.
BCR group includes BCR bank, BCR Banca pentru Locuinte, BCR Administrare Fond de Pensii, BCR Leasing, BCR Asset Management, BCR Securities, Anglo Romanian Bank Limited and BCR Chisinau.