“These results were backed by a positive evolution of the net banking income by 28% (based on an improvement of the net interest income of 29% and of the net commissions income of 21%) amid continuing actions aimed at consolidating an optimal balance sheet structure with an improvement of the Loan to Deposit Ratio (from 56.61% as at December 31, 2018 to 60.72% as at March 31, 2019) and an increase of the share of the net loans in total assets (from 45% as at December 31, 2018 to 47% as at March 31, 2019). Also, the operating cost base has decreased by 5.6% (if the impact of the increase in the contribution to FGDB of RON 3 million is excluded)”, the bank said in a report Thursday.
On the commercial segment, during the first quarter of 2019, the lending activity generated new loans amounting to RON 180 million, with a higher dynamic recorded in the area of legal entities. Even if the sales budget was achieved in proportion of only 88%, this volume of new loans provided an increase of the gross balance of commercial loans of approx. RON 50 million in the area of performing loans, in particular by improving the use of financing lines, as per the report.
Retail lending activity focused on the mortgage area, following the bank’s strategy of balancing the secured and unsecured products portfolio and increasing the volume of long-term exposures in the retail sector. Also, the optimization of sales channels was pursued, both in the direction of increasing sales through “own banking units” channel, as well as by signing new collaboration agreements with the main mortgage brokers. In the corporate loans segment, the new loans production had a usual dynamic in all business sub-segments, both in the Micro and Agro area (approximately RON 70 million) and in the SME & Small Corporate area (approx. RON 95 million), the report also reads.
As a result of the restructuring program, which the Bank provided for in the budget for 2019 (remodeling of the territorial network from 81 units to 46 units with a corresponding decrease of the costs base), a resizing of the balance sheet is noticeable; thus the total assets on March 31, 2019 registered a decrease of approximately 10% as compared to March 31, 2018 and a decrease of 4.6% as compared to December 31, 2018, corresponding to the reduction of current accounts and deposits due to customers).
The credit portfolio (net worth) registered an increase of 13% compared with March 2018 and a marginal increase of 0.8 % compared to December 31, 2018.
Patria Bank is the result of the merger between Banca Comerciala Carpatica and Patria Bank (former Nextebank) and is owned by investment fund Emerging Europe Accession Fund (EEAF).