10m-euro profit in 2009 for CEC

Autor: Razvan Voican 02.03.2010
State-owned CEC (Romanian Savings Bank) last year generated net income worth 42m RON (10m euros), down over 80% from the record high profit posted in 2008 inclusively in the wake of the sale of its stake in Asiban, according to some banking sources. In 2009, CEC became the fifth biggest lending institution on the market in terms of assets, which reached 20.9bn RON (almost 5bn euros), around 55% higher than in 2008. Thus, the bank's market share added two percentage points, to 6.3%, but not as much owing to an increase in lending, but to investments in government bonds, which fattened many banks' assets. Still, the volume of loans granted rose by over 13%, much higher than the market average, but the weight of bad loans also exceeded the average. Under the pressure of plunging banking product demand, CEC closed over 50 branches, operating with around 1,350 in late 2009. On the other hand, it was among the few banks that slightly increased its headcount, to 6,680 employees, whilst most banks operated adjustments.