The BCR group, which includes the biggest bank on the market, ended the first quarter with a net profit of 78.3 million euros, down almost 14% compared with the same time of last year, as a result of the double provision-related expenses for credit risk and of the declining revenues from fees.
Both operating revenues and operating expenses rose by almost 12%.
On the other hand, risk provisions for loans and down payments more than doubled compared with the same time of last year, to the equivalent of 73 million euros.
BCR says the causes are the increase in unemployment and the reduced working hours in some companies, which "unavoidably affected both the incomes of the clients and the companies’ cash flows and profitability."
Still, the bank increased lending in both RON and foreign currency on the corporate segment, with the volume going up by 6.5% as a result of the demand for working capital. Corporate loans account for 48% of BCR’s total portfolio, which amounts to 11.57 billion euros. As for its retail business, mortgage loans went up by 5.7% compared with the end of 2008, while secured consumer loans rose by 4.9%.
Under the circumstances, BCR increased its net revenue from interests by almost 30% compared with the first quarter of 2008, to some 209 million euros.
Erste Group, the majority shareholder of the bank grounds this on the very large volume of loans granted and on the "solid" margins on the retail and SME segments.
On the other hand, the bank earned over 40% less from charges and fees compared with the first quarter of 2008, 38 million euros, while the profit from trading fell to 0.2 million euros.
The share of non-performing loans leaped to 4.4% of the portfolio, from 3.2% at the end of 2008. This indicator was still below 2% in March 2008.
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