Romanian financial group BCR, controlled by Austria’s Erste Bank Group, announced that it recorded a net profit of RON 1.11bn ( EUR 225mn) in H1 2023, up 6.6% y/y (half the CPI inflation), thanks to improved operational performance, supported by higher volume of business with customers.

And yet, the bank admits that the stock of net loans and advances to customers increased marginally by 0.4% YTD (+3.2% y/y for the entire banking system) to RON 55.57bn (EUR 11.2bn) as of June 30, 2023, supported by both retail and corporate segments.

The real driver of profitability was net interest income. The bank’s net interest income increased by 29.9% y/y to RON 1.77bn (EUR 359mn) in H1 2023, driven by higher business volume coupled with higher money market interest rates.

The operating result improved by 20.6% y/y to RON 1.53bn (EUR 310mn million) in H1 2023 on the back of higher operating income, partially offset by higher operating expenses.

(Photo: Gabriel Petrescu/ Dreamstime)

iulian@romaia-insider.com