Romania’s second biggest bank BCR, part of Austrian group Erste Bank Group, announced that its operational profit rose by 9.3% in 2019 compared to 2018, to RON 1,202 million (EUR 258 mln), the highest level in the past five years.

However, the bank faced significant one-off expenses: EUR 150 mln provisions related to the savings-mortgage scheme operated by the bank’s dedicated subsidiary, particularly the bonuses paid from the state budget under procedures allegedly breaching the relevant legislation.

Furthermore, BCR paid some EUR 11 mln as tax on financial assets under the provisions of the emergency ordinance (OUG) 114/2018 amended in 2019.

Eventually, the bottom-line profit halved compared to 2018, to RON 593 mln (EUR 125 mln).

Operationally, BCR granted new loans worth RON 15.2 bln (EUR 3.3 bln) in 2019, with rather equal shares for the retail and microenterprises and corporate segments.

New loans for micro-enterprises increased by 31.5% in 2019 compared to the previous year, mainly due to funding granted within the Start-Up Nation program.

The loans for real estate also advanced significantly, by 34.3% compared to 2018, as a result of new office and commercial space projects financed in the last year.

BCR’s total assets went up by 4.8%, to RON 74.9 bln (EUR 15.6 bln) at the end of December 2019.

(Photo: Shutterstock)

editor@romania-insider.com