BCR posts losses of 2.8 billion lei on doubling risk provision to reduce NPLs
February 27 2015
BCR has reported losses of 2.8 billion lei in 2014 on account of their
decision to reduce the non-performing loans portfolio which doubled
risk provisions to 4.4 billion lei, thus counterbalancing the 1.9
billion lei operating result.
The bank recorded a 19.3 percent decline year-on-year in terms of
operating result, affected by weaker operating income which went down
by 15.3 percent to 3.39 billion lei from 4 billion lei in 2013.
BCR's loan portfolio increased in 2014, new loans in the amount of 7.4
billion lei being booked, housing loans (+300 pct) and cash loans
(+61 pct) accounting for the strongest performance on the retails
segment.
In bank corporate business, performing loans totaled 11.8 billion lei,
with new lending of some 2.7 billion lei released to clients
operating in sectors such as energy, agriculture, constructions,
pharmacy & healthcare, industry, IT&C.
As regards the troubled loans portfolio, the Romanian subsidiary of
Erste Group sold non-performing loans amounting to 2 billion lei,
hence, the overall NPL volume reduced by 24 percent y-o-y, the NPL
ratio drop to 25.7 percent, while the NPL coverage ratio rose to 75.8
percent
BCR reduced total.
"NPL volume by a quarter, delivering on commitment to
accelerate resolution of troubled loans legacy. We fully assume
impact on short term profitability, as we see reduction of
non-performing loans being critical to restore lending growth and
financial performance,” explained
Adriana Jankovicova, CFO BCR.
On the other hand, deposits from customers grew by 6.6 percent to nearly
40 billion euro as of December 31, 2014.
BCR's solvency ratio under local standards (BCR standalone, IFRS with
prudential filters) as of December 2014 stood at 18.9 percent, well
above the regulatory requirements of the National Bank of Romania
(min 10 percent).
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