Operating profit reached RON35 million in the first quarter of 2022, several times higher than in the first quarter of 2021, but 4% lower than in the fourth quarter of 2021, due to an increase in administrative expenses incurred mainly by the yearly payment of contributions to the deposit insurance fund and the resolution fund, fully recorded in the first quarter of 2022. On comparable terms (eliminating these contributions), the operating profit grew by more than 70% in the first quarter of 2022 compared to the fourth quarter of 2021.
Most of the cost increase stemmed from the Apollo growth strategy launched in 2019 and the developments and investments carried on during last year. This was also partly the result of an increase in personnel expenses following the 3% annual growth in the average headcount and wage hikes. The contribution to the resolution fund grew at a fast rate, by RON7 million compared to 2021, the bank said.
The net interest income increased by 31% to a total of RON147 million. The quarterly dynamics saw growth in performing loan volumes (+4% quarter-over-quarter), and the improvement in net interest margin by 19 bps. The three-month interbank lending rate, which is the benchmark for corporate loans, remained on an increasing trajectory, so the average interest on the corporate loan portfolio grew further in the first quarter.
In the first quarter of 2022, the total risk cost amounted to RON58 million. The additional provisions for loan impairment of stages 2 and 3 generated a total risk cost of RON25 million. The provisions for other risks, amounting to RON33 million in the first quarter of 2022, were influenced by the establishment of an extraordinary provision for an operational risk event, in the amount of RON28 million.
The performing loan volumes increased by 22% year-over-year in the first quarter of 2022, being supported firstly by the corporate loans, while mortgage and personal loans increased by 6% and 12%, respectively.
FX-adjusted deposit volumes increased by 8% compared to the first three months of 2021, with a dynamic fuelled mainly by the corporate segment (+90%), while the retail deposits decreased by 21%. Despite the successful deposit-taking activity, the net loan-to-deposit ratio grew by 13 percentage points year-over-year, to 124% (+6 percentage points quarter-over-quarter).