Revenues generated by the treasury, amid high volatility on the financial markets, rose by 50% against 2008 and largely offset the decline registered on the commercial operation segment as a result of the economic recession, says Dorin Badea, head of UniCredit Tiriac Bank’s treasury.
Last year UniCredit reported a 329 million-RON (78 million-euro) net profit, down 8% against the previous year.
“The treasury had a major contribution to the bank’s profitability in 2009. The economic decline was apparent in the commercial operations, in the degree to which clients accessed banking products and paid for them,” says Badea, 30. The revenues generated by the treasury are only partially reflected in income from trading operations, and partially booked in the category of earnings from interests and commissions, depending on what generated them. In addition, a series of revenues result from operations with clients, which other divisions of the bank are involved in, as well, with the income later being registered proportionately.
Badea has been at the helm of UniCredit’s treasury since the end of 2008, after Bogdan Mohoc left the bank amid tensions emerging after the speculative attack on the Romanian currency in October that year.