BRD, the second-largest bank on the Romanian market, posted a55.5 million-euro profit in the third quarter of the year, down byaround 33% against the same time in 2008, amid an over three-foldrise in loan-loss provisions, to 71.3 million euros. In the firstnine months of the year, loan-loss provisions amounted to 165million euros, 2.6 times more than in 2008, which contributed to a30% decline in the bank's net profit, to 156 million euros. Thebank does not publish the share of non-performing loans, but saysit is below the banking system average. On July 31 it was 13.33%.The BRD publishes its results in line with Romanian accountingstandards, which are stricter when it comes to loan lossprovisions. Patrick Gelin, chairman of the BRD, says the lack ofdemand and the rise in non-performing loans are the main ways inwhich the crisis has struck the banking system. "Banking activitycontinued to suffer because of the crisis in the third quarter ofthe year, as well. This was on the one hand because of the lack ofdemand for banking products and services, especially on theindividual segment, and on the other hand because of the continuedrise in non-performing loans." Gelin says the effectiveness ofinternal measures, the spending cuts and the quality of theportfolio are helping the BRD cope in this difficult environment.In order to cut its costs, BRD shed 406 jobs in the third quarterto a total of 8,023 employees on record at the end of September.The cost/revenues ratio thus fell from 43.8% to 42.1%.
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