BVB posts RON 8 million in profit, with business falling 40 pct

Bucharest Stock Exchange (BVB) posted 8 million (1.88 million euros) in net profit last year, down 25 pct compared to 2008 figure, but leaving behind initial estimates, of RON 6.5 million.Turnover dipped more than 40 pct, down to RON 12 million (EUR 2.83 million), amid collapse in the value of transactions on the Stock Exchange by 45 pct, and also due to 10 pct cut in trading commissions, in March 2009. In this context, a significant part of the profit came from interests generated by investments in deposits and government securities.

The Stock Exchange had deposits and placements in government securities worth some RON 70 million in end-2008, of which it distributed dividends to shareholders amounting to over RON 10 million last year.

'The financial profit contributed a great deal to the final figure, but we also had operating profit, amid tighter control of costs,' said Anca Dumitru, BVB general manager, quoted by Agerpres.

Exchange's total revenues last year amounted to RON 23.5 million, 25 percent fall compared to 2008, while total expenses were reduced by 28 percent, to RON 13.9 million. Shareholders will approve the final results in April, when they will also decide on how profits are going to be distributed. Two weeks from now, the BVB shareholders are called upon to decide on listing the stock exchange on its own platform and elect the next Board of Administration for a 4-year tenure.