Romanian state-owned CEC Bank sees assets, net profit rise in 2024
The assets of Romanian state-owned CEC Bank increased last year by 19% compared to the same period in 2023, while profit also rose.
The group’s assets increased from RON 83.61 billion to RON 99.33 billion, while its net profit rose to RON 687.9 million, of which the bank’s net profit was RON 668.2 million. By comparison, CEC Bank registered a net profit of RON 515.8 million in 2023.
Net interest income registered an increase of about 30% in 2024, by approximately RON 483 million, due to the monthly growth of the balance of loans and placements. Market interest rates continued to remain at a high level, and interest income rose by about RON 1.149 billion, while interest expenses also followed an upward trend, with a variation of about RON 666 million.
Net fee and commission income increased by about 11.6%, approximately RON 32 million, mainly due to the increase in income from fees charged by FGCR (+70%) as a result of accessing a higher level of government programs.
Administrative expenses registered a significant increase of about 24.3% compared to those reported in the same period of 2023, mainly due to the additional turnover tax. In the absence of this tax, which in 2024 was not passed on to clients through higher margins/fees, the increase would have been only about 12.9%.
Based on these developments, the cost-to-income ratio at group level improved compared to the previous year’s level, reaching 48.53% at the end of last year, compared to 50.6% at the end of 2023. Without the additional turnover tax, the cost-to-income ratio at bank level would have been 44.87%.
The return on equity (ROE) at group level was 13.35%, compared to 12.35% at group level at the end of 2023. Without the additional turnover tax, ROE at bank level would have been 15.18%, marking a significant increase in the bank’s profitability compared to 2023.
The bank consolidated its presence on the capital market in 2024, successfully placing a new benchmark tranche under the bank’s EMTN Program worth EUR 1.5 billion. The EUR 300 million tranche was rated BB by Fitch in line with the bank’s IDR rating. The received orders were more than twice oversubscribed compared to the initial announcement of EUR 300 million and came mainly from international investors.
CEC Bank granted over 75,000 new loans in 2024, with a total value of approximately RON 15.2 billion. Over 64,000 Romanian individuals benefited from financing worth RON 3.4 billion, intended for real estate investments or the realization of other personal projects. The volume of loans granted increased by 70% compared to the previous year.
New loans granted in 2024 to legal entities amounted to over RON 11.8 billion, of which RON 4 billion were granted to clients newly entered into the bank’s portfolio. In the same time period, the number of clients who accessed credits online tripled compared to 2023.
CEC Bank is the financial institution with the longest tradition in Romania. Founded in 1864, CEC Bank currently has the most extensive national network, with over 1,000 branches and territorial units.
(Photo source: press release)
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