Bad loan charges, losses related to fee and treasury revenuedrove the quarterly income to a five-year low.
BCR group, built around the biggest bank on market, for thethird quarter of this year reported net income worth 6m RON (1.4meuros), down by more than 93% from the similar period of2009.
The figure is calculated in line with international reportingstandards, allowing for a laxer provision treatment. The bank'sretail unit in the third quarter posted losses of almost 14m euros,according to the data published by Erste Group, BCR's parentbank.
After the first nine months, net income reached 494.5m RON (117.7meuros), down almost 30% from the same period of last year. The bankuses an average exchange rate of 4.20 RON/euro for the thirdquarter, although according to NBR's calculations it stood at 4.25RON/euro.
The third quarter figure is accounted for by the 63% higher badloan provision expenses against June 2010, to around 1.6bn RON(373m euros).
Also, Dominic Bruynseels, BCR's chief executive, says the bank lostaround 3m euros on the elimination of the early payment fee forretail loans, while the treasury lost 17m euros through thenegative impact of reassessing some RON/euro forex positions inJuly and September. At group level, the figure was also harmed bythe 28m-euro writedown of some assets part of the balance sheet ofBCR Leasing, the subsidiary with the biggest weight after thebank.
"The government's austerity measures have a clear impact and weexpect this to maintain in 2011. I do not see any significantdecline in provision charges. There will probably be somedeterioration in the SME and large companies' segment during thewinter and the first half of 2011," BCR's boss said.
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