The Romanian Commercial Bank (BCR) recorded a net profit of RON 305 million (EUR 67.4 million) in the first six months of this year, by 51.9% less against the same period last year, a press release informs.
“Against the same period last year, there is a decrease mainly due to the base effect, resulting from the recording in the balance sheet of the first half of 2016, of consistent revenues from the sale of holdings and of risk provisions generated by recoveries from non-performing loans,” the statement reads.
At the same time, the non-performing loan rate fell to 11%, as compared to 14% in June 2016 and 23.1% in June 2015, due to sustained efforts to reduce the loans with problems. The coverage ratio of non-performing loans by provisions has increased, reaching a very comfortable level of 92.1% in June 2017. Also, expenditures decreased by 7.6% against the same period last year.
In the banking activity dedicated to natural persons, BCR granted new volumes of loans totalling RON 2.6 billion as a result of solid sales of unsecured and guaranteed loans. Guaranteed loans were consistently backed by the First House programme on the basis of new allocations of ceiling guarantees, the press release reads.
The capital adequacy ratio according to local standards (bank only) in May 2017 was at the level of 23.2%, above the mandatory requirements of the National Bank of Romania. Also, the capital adequacy ratio calculated in accordance with IFRS reporting standards was 22.1% at the level of Grup BCR.
The communiqué also shows that customer deposits fell by 2.1% to RON 47.208 billion (over EUR 10.3 billion) on June 30, 2017.