CEC Bank posted losses worth €310,000 in May-June

The state-owned Bank registered losses worth RON 1.3 million (€310,000) in May-June, due to a rise in non-performing loans, and, implicitly, provision-related expenses.

The lender posted RON 19 mln (€4.5 mln) in net profit in the first half of 2009, down 41 percent year-on-year. According to previously reported data, CEC Bank's net profit was RON 20.3 mln (€4.83 mln) at the end of the first four months of the year.

Company officials said that the negative results in May-June were due to the general evolution of the banking system, where the loan portfolio worsened.

"I would not say this is actually a loss, because non-performing loans and provision-related expenses increased worldwide. If we look at CEC Bank's operating profit, this rose 24 percent, and the bank's solvency is the best in Romania," the Chairman of CEC Bank, Radu Ghetea, told Business Standard.

money.ro