Bad loan charges, losses related to fee and treasury revenue drove the quarterly income to a five-year low.
BCR group, built around the biggest bank on market, for the
third quarter of this year reported net income worth 6m RON (1.4m
euros), down by more than 93% from the similar period of
2009.
The figure is calculated in line with international reporting
standards, allowing for a laxer provision treatment. The bank’s
retail unit in the third quarter posted losses of almost 14m euros,
according to the data published by Erste Group, BCR’s parent
bank.
After the first nine months, net income reached 494.5m RON (117.7m
euros), down almost 30% from the same period of last year. The bank
uses an average exchange rate of 4.20 RON/euro for the third
quarter, although according to NBR’s calculations it stood at 4.25
RON/euro.
The third quarter figure is accounted for by the 63% higher bad
loan provision expenses against June 2010, to around 1.6bn RON
(373m euros).
Also, Dominic Bruynseels, BCR’s chief executive, says the bank lost
around 3m euros on the elimination of the early payment fee for
retail loans, while the treasury lost 17m euros through the
negative impact of reassessing some RON/euro forex positions in
July and September. At group level, the figure was also harmed by
the 28m-euro writedown of some assets part of the balance sheet of
BCR Leasing, the subsidiary with the biggest weight after the
bank.
“The government’s austerity measures have a clear impact and we
expect this to maintain in 2011. I do not see any significant
decline in provision charges. There will probably be some
deterioration in the SME and large companies’ segment during the
winter and the first half of 2011,” BCR’s boss said.