Bancpost, part of Greek group Eurobank, reported a net profit of RON 65.8 million in the first 9 months of 2015, a substantial profitability improvement as compared to the RON 102.7 million of losses at the end of September 2014, due to spending cuts and the sale of the bad loans portfolio.
A press release informs on Thursday that the pre-provision profit was recorded up by 28 percent, compared to the same period of 2014.
“The results registered in the first 9 month of 2015 confirm the bank’s successful strategy. Bancpost has a solid position in the market, being very liquid and well capitalized. Our main priority is to concentrate on supporting our customers and have an active role in the Romanian economic growth”, the CEO of Bancpost, George Georgakopoulos stated.
Operating expenses dropped significantly, by 17 percent, due to the network optimization, while the cost-to-income ratio decreased by 13 percent to 70 percent after the first nine months of 2015. The bank has a loan-to-deposit ratio of 87 percent, which supports the bank capacity to self-fund its operations.
NPL ratio reached 16,5 percent driven by the accelerated management process of NPLs initiated in the last quarter of 2014.
Bancpost has optimized its funding sources through the active management of its client’s deposits portfolio as well as attracting financing from the IFIs (EBRD, IFC).
Maintaining a comfortable liquidity position and capital adequacy ratio (18.72 percent in September 2015) has been and continues to be at the top of the bank’s management agenda.