The local subsidiary of Austrian Erste Bank group, BCR, the second-largest lender in Romania after Banca Transilvania, plans to pay dividends worth RON 485 million (EUR 102 million), representing half of its net profit in 2018, local Ziarul Financiar reported.

The dividends need to be approved by the bank's shareholders, which is a formality, given that Erste Bank holds 99.87% of its shares.

In 2018, BCR distributed RON 228 million (EUR 49 million) as dividends. The higher dividends paid this year are due to the higher profit, partly prompted by the sale of bank’s stake in Visa and Mastercard.

"In 2018, the shares held in Visa and Mastercard were sold, the net gain from their sale, amounting to RON 196 million, being reclassified from the fair value reserve to the retained earnings," a BCR report to shareholders shows.

The bank proposes the dividend payment to take place no later than the end of June 2019.

BCR Group increased its net profit in 2018 by 80% to RON 1.2 billion (EUR 258 million), the highest net gain reported by BCR over the past ten years.

editor@romania-insider.com

(Photo source: Bcr.ro)