Banca Comerciala Romana (BCR) group posted a profit of EUR 110.2 million last year, down 46.7 percent on the previous year, mainly due to the high provisions and a reduction of the net revenues, BCR has announced. The net expenses on risk provisions stood at EUR 473.6 million, down 12.5 percent on 2009. The group's total assets grew by 6 percent last year, to EUR 17.4 billion.

“2010 was a very difficult year for our customers, so it was the same for BCR. According to expectations, the results were strongly affected by the difficult market conditions in Romania: the economy was submitted to a significant austerity program and to the increase in VAT- with effects that can still be felt,” said Dominic Bruynseels, executive president of BCR.

The group's net operational revenues were down to EUR 1.07 billion, from a previous EUR 1.17 million in 2009.

Both the corporate and the retail segment of BCR's customers were impacted in 2010. BCR mentions the Emergency Ordinance 50, whose implementation resulted in confusion and had a negative impact on the bank's business and on its revenues from commissions. BCR has recently announced it will not implement the Emergency Ordinance 50 for the loan contracts signed before the date of enforcement.

editor@romania-insider.com

More about the Emergency Ordinance 50/2010:

Romanian Chamber of Deputies passes consumer loan decree while EC starts infringement procedures

BCR, second bank to get fine from Cluj county Consumer Protection office on Ordinance 50

Over 1,000 Volksbank clients ask court to interrupt loan payments; first trial date, Nov. 2011

Unhappy customers team up and threaten to sue banks on mandatory loan contract changes