CEC Bank doubles its loan-loss provisions in 2009

The loan-loss provisions set aside by state-held CEC Bank doubled last year to 336 million RON, "eating" into the 2009 profit, said Radu Ghetea, chairman of the bank when he presented the financial results for 2009.
The bank recorded a pre-tax profit of 50 million RON (12 million euros), 10.9% more than in 2008, excluding the one-off income from selling the 25% stake in Asiban.
Ghetea did not wish to reveal the level of the net profit before the audited results, specifying that it would be very close to the pre-tax result, with the bank still benefiting from a tax credit from 2008.
CEC's interest-rate revenues climbed by 47% last year against 2008. The cost/income ratio deteriorated from 59% to 63%, despite the closing of 67 branches, but amid a rise in the number of employees, of ATMs and of active cards. Deposits attracted by CEC last year climbed 22%, being one of the factors that generated the rise in assets. Assets surged by 53.6%, to 20.9 billion RON, bringing the bank to no. 5 on the market based on this indicator.