Greeks at Banca Romaneasca make 5m-euro profit in Q3

Banca Romaneasca, the Romanian subsidiary of Greek group National Bank of Greece, posted a 5 million-euro profit in the third quarter of the year, 37% lower than in the similar period of 2008, under pressure from loan-loss provision expenses. The decline came even amid a rise to 17 million euros in operating profit (before the setting up of provisions), from 15 million euros in the second quarter of the year, according to data presented in Athens by NBG. The results are calculated in line with international accounting standards. Individually, Banca Romaneasca set up provisions worth 7.3 million euros, compared with 8.8 million euros in the second quarter, according to Traian Halalai, 39, deputy general manager of the bank. He expects non-performing loans (overdue by 90 days) to slow down, which means provision costs will also diminish. “For 2010 we expect an around 15% decline in non-performing loans as a result of steps to improve loan collection,” Halalai says.