Profit of BCR Group up 50% YoY in H1

BCR Group achieved a net profit of RON 1.04 bln (EUR 211 mln) in H1 2022, up by 50.9% against H1 2021, driven by improved operating results underpinned by continued strong loan growth.

This was achieved despite stronger provisioning aimed at mitigating the risk faced by certain industries in the given context.

Net loans and advances to customers increased by 10.0% YoY to RON 52.6 bln (EUR 10.64 bln) as of 30 June 2022.

The operating result improved by 25.2% YoY to RON 1.27 bln (EUR 256 mln) in H1 2022 on the back of improved operating income, partly offset by higher operating expenses.

Net interest income increased by 13.9% YoY to RON 1.36 bln (EUR 276 mln) in H1, driven by higher business volumes in both retail and corporate coupled with higher market rates.

Impairment results from financial instruments recorded a provision allocation of RON 209 mln (EUR 42.3 mln) in H1 2022, as compared to an allocation of RON 77.2 mln (EUR 15.8 mln) in H1 2021.

This result has been mainly influenced by the implementation of additional stricter rules for credit risk classification under IFRS 9 applied to clients from industries potentially affected by the current operating environment and geopolitical context. Secondly, the risk parameters have been updated to reflect the bank’s prudent approach to the current and expected evolution of the macroeconomic environment.

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