Bank Leumi Romania reported losses of some USD 7.2 million (RON 24 million) at the end of 2011, down from the USD 16.5 million (RON 53 million) loss recorded at the end of 2010, mainly to the decrease in provisions for doubtful debts to the amount of some USD 8.5 million (RON 26 million), according to the bank.

“The bank’s condition is significantly negatively influenced by the economic situation in Romania. During 2011 the deterioration in the overseas unit’s credit portfolio continued, and was expressed as a growth of loans in arrears and an increase in the extent of legal proceedings used against costumers for debt collection,” reads the bank’s financial statement for 2011.

Bank Leumi Romania’s total assets amounted to some USD 337 million at the end of last year, compared to USD 358 million  reported at the end of 2010. Deposits in 2011 amounted to some USD 189 million,  from USD 195 million  in 2010, while the credit to the public was USD 213 million, from the 2010 level of USD 255 million. Read more in Leumi Bank’s financial statement for 2011 here.

Leumi has been active on the Romanian market since August 2006, when the bank acquired over 99 percent of the issued and paid-up share capital of Eurom Bank S.A. from S.C. Kolal B.V, for  some USD 46 million.

Leumi Romania operates 20 branches and three agencies. In May 2010, the bank closed two branches and three agencies in view of the economic situation in Romania and after an examination of their future potential. In May 2011, the bank closed a further branch and merged a second branch with another. In February 2012, the bank shut six branches and one agency.

Irina Popescu, irina.popescu@romania-insider.com

(photo source: Sxc.hu)