Carpatica expects 23m-euro losses for 2010

Banca Comerciala Carpatica (Carpatica Commercial Bank - BCC stock symbol), controlled by Sibiu-based businessman Ilie Carabulea, has budgeted 94.63 million-RON (23 million-euro) losses for this year - amid a four-fold rise in net loan loss provisions, to 160.7 million RON (39 million euros).
The data was included in the draft budget submitted for the shareholders' approval at the end of last week.
In 2009, the Sibiu-based bank reported 21.1 million-RON (5 million-euro) losses, having set up 38.7 million RON (9.1 million euros) in provisions.
However, according to the draft budget, "the risk cost should be lower in 2010, considering the measures taken by the NBR (National Bank of Romania) on provision regulations (...), which will result in a lower level of provisions required for loans secured by real estate, and will have positive direct consequences on profitability."
In the first quarter of the year the bank estimates 57.7 million RON in losses amid 87.7 million RON in provisions, with losses expected to go down over the next two quarters, and in the final three months of the year it expects to see an around 20 million-RON profit.