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BCR’s net profit in Q1, up by almost 30 pc

Banca Comerciala Romana (BCR) in Q1 2018 achieved a net profit of RON 252.7 million (EUR 54.3 million), up by 28.7 percent compared to the same period of last year (RON 196.3 million), supported by business development and improvement of the portfolio quality, as a press release informs.

“2018 started well for us. Performance comes first and foremost from the trust that our clients give us every day, for which we thank them, as well as from the continuous effort made by my colleagues from BCR. It is an effort that accumulates several key words: Efficiency, Digitization, Accessibility and Learning. This year, perhaps more than ever, we want to be part of the lives of our customers. And not necessarily from a commercial perspective, but from the footprint we have set ourselves to leave in education, technology and the capitalization of development opportunities across society. Everything to build something simple, apparently, but which each of us needs: a better life,” Sergiu Manea, CEO BCR, stated.

In bank retail business, due to the ongoing efforts to build products that best meet the real needs of customers, BCR generated new volume of loans of RON 1.79 billion in Q1 2018, with 24 percent increase in “Divers” cash loan and four-fold increase of sales in “Casa Mea” housing loan, compared to the same period of the last year.

Taking into account “Prima Casa” volumes, BCR has strengthened its leading position as the main banking partner for the Romanians who want to buy a house, with almost a third of the lending market real estate in Romania.

In corporate banking business, new volumes added on the balance sheet totalled RON 259 million. There was a significant increase of 13 percent year-on-year in SME financing (small and medium-sized enterprises), as a result of the proactive strategy of supporting local entrepreneurs.

NPL ratio at 7.2 percent, as of 31 March 2018, further reduced versus 8.1 percent as of 31 December 2017, driven by transition to IFRS 9, coupled with higher cash recoveries and no new defaults in the corporate segment.  NPL coverage ratio improved to 96.3 percent.

Loans and receivables to customers slightly increased by 1 percent to RON 33,820.8 million (EUR 7,262.9 million) as of 31 March 2018, from RON 33,490.9 million (EUR 7,189.2 million) as of December 2017, on the back of higher volumes in retail loans.

Deposits from customers slightly up by 0.7 percent to RON 52,853.2 million (EUR 11,350.4 million) as of 31 March 2018, versus RON 52,496.1 million (EUR 11,268.9 million) as of 31 December 2017, driven by increases in both corporate and retail deposits. Customer deposits remain BCR’s main funding source, while the bank benefits from diversified funding sources, including parent company

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