BCR's npls soared 71% in 3 monthsPublish date: Astazi, 03-11-2009
The nonperforming loan (NPL) portfolio of Banca Comerciala Romana (BCR) increased 70 percent in the third quarter of this year, to a share of 10.6 percent in total loans at the end of September from 6.2 percent in June 2009.
BCR posted total loans worth RON 45.8 billion (some €10.8 bln, computed at an average RON 4.2292/€1exchange rate) at the end of the first half of 2009, of which RON 2.8 bln (some €0.66 bln) were NPLs. At the end of September, the loan portfolio was worth RON 45.9 bln (some €10.85 bln, at an average RON 4.2277/€1exchange rate) of which NPLs made up RON 4.9 bln (some €1.1 bln).
"In the third quarter, nonperforming loans were mainly affected by the SME [small and medium-sized enterprise] segment and real estate business projects, on which BCR has little exposure compared to the market," according to a statement by the bank. Meanwhile, BCR indicated that it registers "a comfortable nonperforming loan coverage rate, through collaterals and provisions, of some 120 percent."
The NPL ratio posted by BCR at the end of September is the second-highest level among Erste's subsidiaries, after that registered in Ukraine. The net risk costs surged 90 percent in the second quarter alone, to RON 1.48 bln, from RON 783 mln. "We noticed in the retail loan portfolio in Romania a relaxation of arrears, due to the stability of the currency. We expect this trend to continue, because we believe the leu will remain stable at this level in the coming quarters," Erste Group's Risk Manager, Bernhard Spalt, said in a recording published on the Austrian bank's Web site.
- Insurance market stagnated in 2013 while GDP chare dropped to 1.3%
- The Romanian Leasing Market as of December 31, 2013
- Millennium Bank reports best results since its launch, helped by stronger banking income and cost cuts
- BCR cheapens First Home loans and lowers interest loans for loans in lei
- Millennium Bank's new Salary account clients receive up to 600 lei bonus and their utility bills' payment
- GarantiBank and Seamless introduce SEQR in Romania: the newest mobile payment solution
- Bancpost telecom services, now provided exclusively by Romtelecom and COSMOTE Romania
- Millennium Bank cards offer discounts in Domo stores
- BCR Supervisory Board reshuffles Management Board
- NBR decide to lower the monetary policy rate to 4.25 percent per annum
- Common appointments in Romtelecom and COSMOTE Romania
- Up to 5.5% annual interest rate for Millennium Bank's promotional three-month lei deposit
- Eurozone in recovery mode but gap between North and South still widening
- UniCredit Tiriac Bank and RBS Romania announce the successful completion of the retail clients' migration
- Millennium Bank grants First House loans in lei