Romanian financial group BCR, controlled by Austria’s Erste Bank Group, achieved a net profit of RON 562.7 mln (EUR 114.4 mln) in Q1 2023, up by 17.8% compared to the same quarter last year. Profitability ratios improved as both assets and equity advanced at slower rates.

The rise in earnings was driven by improved operating results underpinned by “strong loan growth,” BCR claims.

However, the stock of net customer loans granted by Banca Comercială Romana (BCR) advanced by only 10.4% y/y as of March 31, 2023 (slower than the profit) – in line with the overall stock of non-government bank loans (+10.2% y/y) but not as fast as consumer prices, wages or (most likely) GDP.

In general, financial intermediation in Romania is losing ground amid high inflation.

BCR Group’s assets increased comparatively slower, by 1.4% y/y to RON 100.2 bln (EUR 20 bln) and its equity by 5.6% y/y to RON 11.7 bln (EUR 2.3 bln) at the end of March.

The volume of new loans extended to households plunged from RON 2.4 bln in Q1 last year to RON 1.7 bln in the first quarter this year – far from the “strong loan growth” announced by the bank.

The loan origination on the corporate side edged down as well, however more moderately: from RON 2.8 bln to RON 2.7 bln in Q1 this year. 

iulian@romania-insider.com

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