The result was mainly due to the lower income compared with the previous quarter, the increase in operational expenses and the new tax in the banking sector introduced in 2024, which requires the bank to pay an additional 2% of its income. As a result, the tax stood at more than RON13 million, compared with RON5 million in the previous quarter, the bank officials say.
Operating profit stood at RON45 million, 5% lower year-on-year and 24% lower compared with the fourth quarter of 2023, as a result of the 5% decline in total income and of the increase of 7% of operating expenses, largely due to the deposit insurance fee paid in January.
Net interest income shrank 15% year-on-year to RON177 million, as a result of the decline in the volume of new loans, amid high interest rates and a decline in actual loan stock.
Net fees and commissions surged by 41% in local currency, which change was caused by the base effect of the reversal in the leasing entity’s nonperforming agreements in the fourth quarter.
The 30% decline in other income was caused by the normalization of income from currency exchange, which had increased owing to seasonal effects in the fourth quarter.
The volume of performing loans granted shrank by 3% compared with the previous quarter.
The deposit volume declined by 2% compared with the fourth quarter of 2023 but increased by 14% year-on-year.
Assets reached RON19.7 billion, flat on 2023.
(English version by Loredana Fratila-Cristescu)