MKB Romexterra narrows losses to 15m euros

MKB Romexterra, a small player indirectly held by Germany’s
Bayern LB group, last year posted net losses of 40.3m RON (9.5m
euros), down 39% from the 2008 loss. Calculated in euros, the loss
was half the previous year’s one. Losses were triggered by the high
expenses generated by the deterioration of the bank’s loan
portfolio, while its operating result was positive. Net expenses
related to the deteriorating loan portfolio last year amounted to
72m RON (17m euros), slightly lower than in the previous year. The
bank last year embarked upon a restructuring process, aiming to
erase bad loans from its balance sheet in a bid to re-launch its
retail operations. In parallel, an operational expense adjustment
plan was launched, entailing branch closures and layoffs. The
bank’s management team has also been completely changed in the past
year, with the general manager position being taken over by Dan
Sandu, who thus replaced Adrian Radu.