RO state-owned bank CEC sees profit down by 28%, but “above target” in Q1

Romanian state-owned CEC Bank reported a net profit of RON 81.7 mln (EUR 16.7 mln) in the first quarter of the year, 28% lower compared to the profit reported in the same period last year but "above the target."

The net assets increased by 16% year-on-year to RON 42.4 bln (EUR 8.65 bln) at the end of March.

"In the last 15 months, in a difficult and unprecedented context, we have shown that we have adapted quickly and managed to grow and support local companies and the economy as a whole, repositioning CEC Bank as an efficient, modern, and responsible bank. We have kept open and safe the largest territorial [bank] network, of over 1,000 units, we have launched our own proactive customer support solutions during this period, and we have accelerated the digitalization and modernization of the bank. Today, we have 100% online accessible products for individuals, such as accounts, credit cards, and personal loans," said Bogdan Neacsu, president and general manager of CEC Bank, quoted by News.ro.

Net interest income was stable, amounting to RON 277.4 mln (EUR 56 mln), given that the increase in assets was offset by the reduction in market interest rates (3-month ROBOR decreased from an average of 3.03% in the first quarter of 2020 to 1.64% in the first quarter of 2021).

The loan portfolio (gross terms) rose by 13.2% compared to the end of March 2020, reaching RON 23.6 bln, with above-average performances in the mortgage segment (+36.2%) and corporate segment (+13.2%).

The former was partly due to the Government-backed IMM Invest program for small and medium-sized enterprises.

The portfolio of government securities amounted to RON 14.8 bln (EUR 3 bln) at the end of the quarter.

(Photo courtesy of the company)