BCR reports biggest profit in history: 541m euros

BCR, the largest bank on the market, closed 2008 with a record net profit of 541 million euros, which includes a net income of almost 193 million euros secured from the sale of minority stakes in Asiban and Banca Italo-Romena, as well as of its insurance businesses. Apart from these one-off gains, last year’s net profit totalled almost 349 million euros, up 26% in euros and 39% in RON against the 2007 level. The bank boosted credit risk provisions 3.8 times, to a volume equivalent to 170.2 million euros, in response to the deterioration of the macroeconomic environment. Around 40% of the provisions were set up in the fourth quarter, affecting the net profit recorded in the last three months of the year. However, net revenues from interest rates and fees climbed by around 22% in the fourth quarter of 2008 against the similar period of 2007. “2008 was an exceptionally good year for the BCR. Performance of core operations has improved significantly following the completion of the development and integration programme into the Erste Group. This has enabled the BCR to respond suitably to the challenges arising in this significantly different environment,” said Dominic Bruynseels, CEO of the BCR.