CEC's profit unimpeded by restructuring

Casa de Economii si Consemnatiuni (Romanian Savings Bank – CEC) posted 175bn ROL (about 4.6 million euro) net profit in the first half, up nearly 39% in nominal terms and 23% in real terms compared with the results in the first half last year. The net profit had reached 126bn ROL in H1, 2002. CEC’s revenues went up slightly faster (76%) than expenses (73.8%), so that it logged 3,300bn ROL revenues and 3,056bn ROL expenses on June 30. “CEC kept in line with the budget in the first half, a budget that had been built around the restructuring programme it is undergoing now anyway. Moreover, we concluded the first seven months with 3,822bn ROL in revenues. The experience of other banks shows this is a very hard time to make profit. Still, CEC managed to make 284bn ROL profit until July 31, due to its higher revenues, pushed up by the growth in the volume of credits granted to the population and by placements, fees and provisions,” Constantin Teculescu, CEC chairman commented for Ziarul Financiar. ZF