Banca Comerciala Romana (BCR) made net profits of 443 million RON (121 million euros) in the first half of the year, the equivalent of 70% its profits for the whole of 2004. Compared with June last year, its net profits went up 23% in RON and 36% in euros.
BCR''s assets rose to 26.3bn RON (7.18bn euros) half way through the year, an increase of 30% in RON since the same time in 2004. Calculated in euros, this represents growth of 42%.
"In the current circumstances, with a falling interest rate margin, we believe the way we organise our business will allow us to keep our full-year indicators above the budget forecasts. Maintaining our resources has ensured and will sustain the increase in results," BCR chairman Nicolae Danila told Mediafax.
The bank''s assets grew 12% in the first six months against a volume of loans of 12.4bn RON. Loans to individuals climbed 40% to a total of 4.6bn RON. Total deposits by non-banking customers stand at 18.2bn RON.
Danila says that with the exception of Casa de Economii si Consemnatiuni (Romanian Savings Bank: CEC), BCR has the lowest spread between deposits and loans in RON. He added that he was expecting the market to align to BCR''s rates and only after that would the reduction in active interest rates be analysed. However, he also said the bank would maintain is policy of encouraging savings.
He does not believe the new context created by the NBR regulations to limit lending in foreign currency will prevent banks from providing loans in foreign currency. Although he say transfers of credit portfolios to parent banks would be unlikely, being complex operations, he nonetheless said there would be some ways to avoid the new regulations.
"The banks that are present on the Romanian market have experience with other emerging countries and know what solutions to adopt to continue operating at any given moment," the BCR official explained.
Danila sees the NBR''s concern for resizing the shares of the foreign currency and domestic currency loans as a common concern in all Central and Eastern European countries, including commercial banks.
BCR is now going through the second stage in its privatisation process, which will see the selected banks submit binding bids by October 17. The banks still left in the race after the first phase are Fortis, Banco Comercial Portugues, National Bank of Greece, Banca Intesa, Deutsche Bank AG, Erste Bank AG, Dexia, KBC and BNP Paribas.
Investors can choose to take over either 50% plus one share in BCR, or a stake of 61.8825%.
The State Asset Resolution Agency (AVAS) is the main shareholder in BCR and still owns a 36.88% stake after having sold 25% plus two shares to the European Bank for Reconstruction and Development and International Finance Corporation (the World Bank''s private sector investment arm) for 222 million dollars last year.
Other shareholders include BCR employees with 8%, SIF Oltenia, 6.11%, SIF Banat-Crisana, 6%, SIF Transilvania, 6%, SIF Moldova, 6%, and SIF Muntenia, 6%.
Banca Comerciala Romana''s has equity capital of 3.5bn RON (nearly one billion euros). The bank posted a solvency rate of 16.63 at the end of June. The bank''s territorial network of 319 offices is one of the largest in the country.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
