Romexterra Bank, higher assets, lower profit

Romexterra Bank registered net profit standing at 46 billion ROL (1.1 million euros) in the first seven months of the year, lower as compared to the year-ago period. At the end of the first six months of 2003, the bank had net profit worth 78.9 billion ROL, while profit amounted to only 28 billion ROL in H1, 2004. Romexterra assets at the end of July reached 6,899 ROL (168 million dollars), 52% higher in nominal terms as compared to the end of 2003. The bank’s equity is worth 1,081 billion ROL (26 million euros), while the volume of granted loans stands at 1.841 billion ROL (45 million euros). According to the bank’s officials, the drop in profit was triggered by the territorial expansion programme and by a series of provisions made by the bank. “The bank’s profit shrank following efforts to expand the territorial network, and because of a series of provisions,” says Adrian Radu, president of Romexterra Bank. The bank’s territorial network at present includes 32 units. The bank’s president expects the bank’s profit to surge in the second half of this year. ZF