Leumi earns more during crisis

Bank Leumi, Romanian subsidiary of one of the largest Israeli
financial groups, posted an 11.6 million-RON (2.7 million-euro) net
profit in the first nine months of the year, up 59% in RON against
the profit recorded in the similar period of 2008. The result is
calculated in line with the international financial reporting
standards (IFRS). In the third quarter of the year, the bank posted
a 3 million-RON (0.7 million-euro) profit. “Because we were
extremely cautious, the rise in non-performing loans was stabilised
in June, when we set up a department for monitoring problematic
loans,” says Laurentiu Mitrache, chief executive of Bank Leumi. He
says the bank’s profit was similar according to Romanian Accounting
Standards to that reported in international standards. Many banks
report big differences between results calculated in line with
local standards and those calculated in line with IFRS, with the
difference lying mainly in the treatment of provisions.