BCR Group posted a net profit of EUR 117 million in the first half of the year, down by 19.5 percent compared to the same period of last year, the group has announced. The decrease was mainly due “to much higher provision expenses due to the contracting economy, heavily impacting the market and BCR’s customers' demand,” according to the company.

“BCR continued to demonstrate its ability to adapt to difficult market conditions. Its likely those conditions will continue to prevail in the second semester of 2010,” said Dominic Brusseyns, BCR CEO.

The net charge with risk provisions for loans and advances totaled EUR 233.4 million, “in line with expectations as SME especially experienced cash-flow and liquidity constraints,” the group has said in a statement.

“BCR continued to focus on finding sustainable solutions for re-organizing and restructuring overdue loans thus proactively supporting its customers in both the retail and corporate segments to cope with the difficult market conditions,” it went on.

Despite the tough period, the bank increased its loans portfolio by 2.5 percent, to EUR 10 billion. “The main driver of the growth in lending was the corporate sector,” the bank has said. Corporate lending went up by 7 percent during the first half of the year. BCR maintained its dominant position on municipalities financing segment - over 75 percent market share as of half- 2010.

BCR has granted EUR 377 million of Prima Casa (First House)loans, of which EUR 244 million were drawn in 2010.

BCR's total assets went slightly up, to EUR 15.2 billion, from EUR 5 billion in December last year. Its branches network reached 668 outlet mid-2010, with only 7 new branches opened in the first half of the year.