UniCredit strategy: lending growth and spending decline

UniCredit Țiriac Bank ended the third quarter with 67 million RON (almost 16 million euro) net profit, down 6% compared with the same time last year. Nine months into the year, net profit amounted to 215 million RON (52 million euros), a 15% decline compared with 18% in the first half.
Operating revenues exceeded one billion RON (245 million euros) nine months into the year, up 15%, while the credit portfolio rose by 13%, to 13.3 billion RON (3.1 billion euros). Midyear, the lending increase stood at 11%, with the Italian group continuing to apply the strategy designed to boost the loan market share.
On the other hand, operating expenses only rose by 1% in nine months, so that the cost/revenue ratio fell to 41.8% from 47.5% a year ago.
Despite the increase in loan volume, Răsvan Radu, UniCredit Țiriac Bank’s CEO says that the prolonged recession is affecting asset quality.