Home / Business / BCR, the largest bank, reports the best first semester in the last ten years: profit of 697 million lei

BCR, the largest bank, reports the best first semester in the last ten years: profit of 697 million lei

today, 00:08


Anelis Baciu

♦ Interest income increased by 9.5% on the back of lending advances and market interest rate rises ♦ New loans advanced by 15% to lei 4.7 billion.

The increase in credit production and the resumption of market interest rates brought BCR the best first semester of the last ten years, the group including the largest local bank reporting a net profit of 697 million lei (150 million euros).

"In the coming period, we will step up our efforts to provide competitive services, strengthen trusted relationships, and particularly promote responsible banking and credit services," said Sergiu Manea, BCR CEO

directed mainly towards the sector, where BCR granted loans worth 4.1 billion lei. New financing for companies was almost seven times lower, or 568 million lei. The total volume of new loans granted by BCR in the first six months of this year was higher by about 15% compared to the same period last year. After the loans granted in 2018, the total stock of BCR loans reached 35 billion lei. BCR says that new loans are of better quality, and this allowed BCR to release provisions of 30.1 million lei in the first semester, compared to an expense with provisions of 61.6 million lei in the same period of

The increase in the loan portfolio and the resumption of interest rate increases in the market were reflected in the profit and loss account of BCR, with the bank's total operating income rising by 7% to 1.5 billion lei. The largest increase, of 9.5%, was registered at the level of interest receipts, which amounted to 962 million lei. Growth is described by BCR as "significant" and is also attributable to a larger volume of current accounts. In fact, BCR had anticipated the interest rate increase in 2018.

With regard to assets, BCR reported a 7% increase in the last year, totaling 70.2 billion lei at the end of June 2018. BCR had at last year's market share of 15.8%, down from 16.3% at the end of 2016. The Austrian Erste Group, the BCR shareholder, posted a net profit of 774 million euros in the first half of this year, 24% more than in the first half of 2017. Erste shares climbed yesterday by about 2% on the Vienna Stock Exchange, with an action traded at 37.2 euros. Erste has a market capitalization of EUR 15.2 billion.

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Article published in print edition of Ziarul Financiar dated 01.08.2018

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