HVB Bank Romania was the most profitable branch of the German group in 2003, for the second year in a row, with a 40% profitability rate (in line with Romanian accounting standards) and 47% according to the international accounting standards.
HVB Bank Romania last year logged net income worth 468 billion ROL (almost 12.5 million euros), up 87.2% from 2002.
“HVB Romania last year achieved the highest growth rate of all the HVB Bank branches located in Central and Eastern Europe and, also, had the best indicator in the entire Romanian banking system. Last year’s results have exceeded our expectations by far, whereas 2003 was a time of consolidation for the Romanian banking system and increasingly more banks tried to enter various new market niches,” Dan Pascariu, the bank’s president, said yesterday.
In nominal terms, gross income doubled, up to 548 billion ROL, as a result of the 17.31% revenue growth and because expenses kept to the same levels as in 2002.
Revenues amounted to 1,917 billion ROL, with the money earned from commissions and interests gaining ground against the treasury operations. “In the last few years, revenues from treasury operations have accounted for more than 50% of the total revenues, but the corporate and retail segments are catching up. I believe retail will soon make a significant contribution to the revenue growth,” the bank’s president stated.
Expenses were confined to 1,370 billion ROL, also due to the bank’s improved negotiating skills for the establishment of new banking units.
According to HVB Romania vice-president, Helmut Bernkopf, companies accounted for more than 50% of the bank’s revenues last year. Retail contributed 15-20 percent to the total revenues, with the rest covered by treasury operations.
Preliminary data point to a 144% surge in the balance of loans granted both to natural and to legal persons.
According to Pascariu, the bank’s top priority is to grant foreign currency financing, which accounts for more than 80% of the loans given by the bank. This occurrence is explained by the very high rates levied for loans in the national currency.
oana.nuta@zf.ro