Romanian state-owned lender CEC Bank reported RON 274.2 million (EUR 56.3 mln) preliminary unaudited net profit in the first nine months of the year.

The results were "above the target," and they contribute to the bank's consolidation, CEC says in a statement.

"The results are encouraging, in a context shaped by uncertainty and low interest rates. We have managed to grow in all areas of activity and keep implementing the bank's modernization strategy. CEC Bank is adapting its business model, following the digitalization and the diversification of income sources, by increasing the share of revenues from fees [higher volume of operations," said Bogdan Neacsu, general manager of CEC Bank.

In January-September 2020, CEC Bank recorded net interest income of RON 832.3 mln, a level close to that of the same period last year, in a context characterized by lower interest rates, while net income from fees increased by about 6% to RON 190.9 mln, amid the increase in the volume of operations.

The loan loss provisions doubled to RON 221 mln, impacting the bank's bottom line.

Furthermore, the bank says it has operated negative net adjustments generated by the changes in the contractual clauses in force, mainly due to the moratorium that postpones the payment of credit installments.

The total assets of CEC amounted to RON 37.5 bln (EUR 7.7 bln) at the end of September, over 14% more compared to the end of last year.

The loan portfolio granted to customers, at gross value, increased by about 9% over the same period, with approximately equal growth rates on the segments of individuals and companies.

(Photo courtesy of the company)

andrei@romania-insider.com