CEC Bank's profit shrinks despite robust credit expansion

Romanian state bank CEC Bank announced that its net profit reached RON 54.2 mln (EUR 11 mln) in the first quarter of the year, one third less compared to the same period last year.

The decline was caused by a higher contribution to the guarantee and resolution funds.

The bank's assets increased by about a fifth compared to the first quarter of last year.

Net interest income increased by 15% compared to the same period last year, to RON 319.1 mln, while net commission income increased by 11% to RON 77.8 mln.

The bank contributed RON 52 mln to the guarantee and resolution funds, twice as much as in the same period last year.

The provisioning cost remained roughly constant from last year, RON 106 mln in the first quarter of this year.

The non-performing loan rate slightly increased during the first quarter of the year, to 5.59% at the end of March, compared to 5.29% at the end of 2021.

The bank granted 8,400 new loans with a cumulative value of RON 2.4 bln, of which RON 900 mln were investment loans for companies.

The value of new loans for individuals exceeds RON 625 mln, housing loans having a share of about 67%.

The portfolio of bank loans increased by 17.8% compared to the end of March 2021, to RON 27.8 bln.

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