BCR Group profit down 20.1% in the first half, to 606.8 million lei

BCR group's net profit after tax and minority interests fell by 20.1% in the first half, to 606.8 million lei (144.2 million euros), mainly due to higher costs for provisions and reduced revenue from commissions, generated by reductions in consumptions.
The profit reported by the group is above the average estimates of the analysts cited by Reuters, of 131 million euro.

"According to expectations, the net costs for Risk provisions for loans and advances continued to grow during the first six months, to 783.1 million lei (186.1 million), almost three times the value in the same period of 2008, 271.9 million lei. However, the first half of this year marked an increase of provisions in the balance sheet by only 8.5%, as against the end of 2008, reflecting the current prospects of loss," reads a BCR release.

The data represent the consolidated, non-audited results, in accordance with the international accounting standards IFRS. The value of BCR group assets increased by 5.1% during the first six months, as compared to the end of last year, from 69.1 billion to 72.57 billion lei.

The amounts due to customers increased their value by 5.8%, to 34.9 billion. At the same time, the amounts due to credit institutions have advanced by 13.6% to 25.6 billion lei.
"The operating costs have increased at a moderate pace, well below the inflation level, (...) as a result of constant monitoring of staff and administrative costs, also negatively affected by the depreciation of the leu," the BCR release mentions.
The main engine of the increase in operating income was the advance in the net income from interests at level group, 21% over the same period in 2008, particularly determined by the higher volume of loans and the solid margins on the corporate segment. In the first half, the group achieved interest income totalling 1.73 billion lei.
On the other hand, BCR Group's income from fees and commissions fell by 35.7%, to 317 million lei in the context of reducing the consumption expenditures of the population, of the strategy for revision of banking service prices, as well as the improvement of the customer accounts structure.

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