The bank said its net profit was affected by higher net provision costs, which were RON110 million higher than in the first nine months of 2019, and negative net adjustments of RON43 million stemming from loan repayment deferrals.
“The evolution of CEC Bank results is encouraging considering an environment marked by uncertainties and low interest rates. CEC Bank is adapting its business model, digitizing services and diversifying revenue sources,” said Bogdan Neacsu, general manager of CEC Bank.
The bank registered net interest income of RON832.3 million in the first nine months, similar to the same period last year amid a lower rate environment as the average interbank three-month rate dropped to 2.49% from 3.16% in the same period last year.
Net income from fees and commissions grew by around 6%, to RON190.9 million.
The bank said its loan portfolio grew 9% in the first nine months and financing through government programs had the biggest growth rate, reaching RON762.6 million.
CEC Bank said it received over 4,600 applications under the SME Invest program, of which over 1,200 have been approved and 1,500 others are currently being processed.
On the retail lending segment, the biggest growth was in mortgage lending (+23%), totaling RON420 million in the first nine months.
Customer deposits grew 12% in the first nine months, to RON31.1 billion.