BCR's profit will remain under pressure in the fourth quarter ofthe year, although the treasury is expected to perform better thanin the third quarter, mainly because of the decline in revenuesfrom fees, says Dominic Bruynseels, CEO of the largest bank on theRomanian market.
The decline in BCR's net profit to 6 million RON in the thirdquarter of the year should not be seen as surprising given that thebank supports 25% of the economy, so it cannot be immune to theshift from fast growth to deep recession, is the generalexplanation of the head of the bank for the third-quarterresult.
As far as revenues are concerned, however, the main cause of thedecline is the plummeting of those from the treasury operations,from 186 million RON in the third quarter to just 9 million RON inthe July-September period.
"Third-quarter results reveal the very important effects of thechanges that have occurred in the Romanian economy, which we canonly counter by boosting efficiency. I don't expect the treasuryoperation situation to be replicated in the fourth quarter, but Iexpect pressure on fee-related revenues to rise, partly as a resultof Ordinance 50. Undoubtedly, we will also remain under thepressure of non-performing loans and of provisions," Bruynseelssaid.
Net revenues from fees amounted to 123 million RON, down 23%against the third quarter of 2009.
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