BCR reports a solid quarterly operating result
Reflecting comprehensive optimisation measures, operating expenses in the first nine months 2012 reduced by 6.1 per cent or 77 million lei (17.4 million Euro) YOY to 1,184.8 million lei (267.4 million Euro).
The operating income in the same period declined by 4.5 per cent YOY to 3,008.6 million lei (679.0 million Euro), mainly on the decline in net interest income (-10.2 per cent YOY) which is due to weak consumer credit demand, increase of NPLs and declining interest margins due to the shift to low risk assets. However, in Q3 the operating income rose q-o-q (+1.2 per cent), mainly due to positive developments in net interest income.
Cost-income ratio slightly improved to 39.4 per cent as of end September 2012 owing to optimization measures. Continued prudent provisioning resulted in an increase of risks costs also in Q3 2012.
Net charge with risk provisions for loans in the first nine months of 2012 has increased by 63.8 per cent in yearly comparison to 2,635.2 million lei. However, NPL formation in both corporate and retail significantly slowed in Q3 versus previous quarter. Additional provisioning requirements in Q3 led to a continuously improved NPL coverage ratio of 57.2 per cent as of end-September 2012 versus 50.6 per cent at year-end 2011. The risk costs development reflects the impact of the difficult business environment on BCR large corporate and real estate customers.
BCR group maintained its leading position in the market with around 20% market share by total assets despite a decline by 0.5 per cent YTD to 76,370.2 million lei (16,827.9 million Euro).
BCR’s loan book continued to grow (+3.1 per cent or 1,661.6 mil lei YTD) mainly due to retail lending. Retail lending rose mainly on mortgage loans development (+1.8 pp annual gain in market share to 25.4 per cent). BCR’s market share in overall lending maintained at over 21 per cent as of end-September 2012 while market share in Euro mortgage loans increased to about 30 per cent (1.1 pp gain YTD).
“BCR Group delivers first quarter where operating performance has improved. This achievement outlines and underlines our commitment to bring BCR Group back to profitability next years. Aside from improving our cost base, BCR Group shall focus on systematic pursuit of improvements concerning commercial capabilities, operational excellence and asset quality. These focused measures shall deliver sustainable results” said Tomas Spurny, CEO of Banca Comerciala Romana.
The operating income in the same period declined by 4.5 per cent YOY to 3,008.6 million lei (679.0 million Euro), mainly on the decline in net interest income (-10.2 per cent YOY) which is due to weak consumer credit demand, increase of NPLs and declining interest margins due to the shift to low risk assets. However, in Q3 the operating income rose q-o-q (+1.2 per cent), mainly due to positive developments in net interest income.
Cost-income ratio slightly improved to 39.4 per cent as of end September 2012 owing to optimization measures. Continued prudent provisioning resulted in an increase of risks costs also in Q3 2012.
Net charge with risk provisions for loans in the first nine months of 2012 has increased by 63.8 per cent in yearly comparison to 2,635.2 million lei. However, NPL formation in both corporate and retail significantly slowed in Q3 versus previous quarter. Additional provisioning requirements in Q3 led to a continuously improved NPL coverage ratio of 57.2 per cent as of end-September 2012 versus 50.6 per cent at year-end 2011. The risk costs development reflects the impact of the difficult business environment on BCR large corporate and real estate customers.
BCR group maintained its leading position in the market with around 20% market share by total assets despite a decline by 0.5 per cent YTD to 76,370.2 million lei (16,827.9 million Euro).
BCR’s loan book continued to grow (+3.1 per cent or 1,661.6 mil lei YTD) mainly due to retail lending. Retail lending rose mainly on mortgage loans development (+1.8 pp annual gain in market share to 25.4 per cent). BCR’s market share in overall lending maintained at over 21 per cent as of end-September 2012 while market share in Euro mortgage loans increased to about 30 per cent (1.1 pp gain YTD).
“BCR Group delivers first quarter where operating performance has improved. This achievement outlines and underlines our commitment to bring BCR Group back to profitability next years. Aside from improving our cost base, BCR Group shall focus on systematic pursuit of improvements concerning commercial capabilities, operational excellence and asset quality. These focused measures shall deliver sustainable results” said Tomas Spurny, CEO of Banca Comerciala Romana.
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