Operating profit reached RON86 million, double compared with the same period in 2021, a positive effect of a 22% increase in total revenue, partially offset by a 10% increase in operating expenses.
Net interest income increased by 35% year-on-year and net fees and commissions increased by 9%. The rise in operating expenses is mainly because of investments made as part of the bank’s growth strategy, which resulted in the annual increase in expenses for the IT area, a 2% increase in the average number of employees and a higher contribution paid in 2022 to the Bank Deposit Guarantee Fund and the Resolution Fund, the bank’s report said.
In the January-June period, net interest income increased by 35% to a total of RON313 million, while the total cost of risk was minus RON93 million, fueled by a credit risk cost of minus RON59 million, due to an increase in the loan portfolio but also to a declining economic outlook for certain sectors.
Provisions for other risks of minus RON34 million were due to an extraordinary provision for an operational risk event of minus RON28 million, the lender’s report added.
(English version by Loredana Fratila-Cristescu)