Biggest lender in Romania sees 36% drop in net profit in 2017

BCR, the largest lender in Romania based on its assets, saw a net profit of RON 668.1 million (EUR 146.2 million) in 2017, down about 36% year-on-year, according to the un-audited financial results presented on Wednesday, February 28. In 2016, the lender posted a net profit of RON 1.04 billion (EUR 233 million). The operating result went up 3.5% year-on-year in 2017, to RON 1.34 billion (EUR 294.1 million), driven by higher operational revenues and more efficient spending, according to the bank. The net interest income was down by 1.3% in 2017 vs. 2016, to RON 1.76 billion (EUR 386.2 million) from RON 1,78 billion (EUR 397.9 million) in 2016. Meanwhile, the net fee income was down by 1.2% to RON 700.7 million (EUR 153.4 million) from RON 708.9 million (EUR 157.9 million) in 2016. In 2017, BCR granted new retail and corporate loans totaling RON 8.1 billion (EUR 1.7 billion). This led to an advance in the stock of net loans to customers of 3.7% year-on- year. In the retail banking business, the lender granted new loans totaling RON 5.5 billion (EUR 1.2 billion). The NPL ratio stood at 8.1% at December 31, 2017, lower compared to the 11.8% registered at the end of December 2016, the bank’s results also showed. The bank’s total assets went up last year to RON 70.94 billion (EUR 15.5 billion). Irina Marica, irina.marica@romania-insider.com