MKB Romexterra narrows losses to 15m euros

MKB Romexterra, a small player indirectly held by Germany's Bayern LB group, last year posted net losses of 40.3m RON (9.5m euros), down 39% from the 2008 loss. Calculated in euros, the loss was half the previous year's one. Losses were triggered by the high expenses generated by the deterioration of the bank's loan portfolio, while its operating result was positive. Net expenses related to the deteriorating loan portfolio last year amounted to 72m RON (17m euros), slightly lower than in the previous year. The bank last year embarked upon a restructuring process, aiming to erase bad loans from its balance sheet in a bid to re-launch its retail operations. In parallel, an operational expense adjustment plan was launched, entailing branch closures and layoffs. The bank's management team has also been completely changed in the past year, with the general manager position being taken over by Dan Sandu, who thus replaced Adrian Radu.