Profit of Romania's largest lender, down by half compared to last year

Romania’s biggest lender Banca Comercială Romana (BCR) recorded a profit of RON 559.8 million (EUR 121.8 million) in the first nine months of this year, down 51% compared to the same period of 2016. The result declined mainly due to base effect from substantial risk provision releases and from significant gain following the sale of certain participations in the first nine months of 2016. Meanwhile, the operating profit amounted to RON 1.07 billion (EUR 235.5 million) this year, up 0.4% year-on-year, mainly due to lower operating expenses. The bank granted RON 6 billion (EUR 1.3 billion) worth of new loans in the first three quarters and increased its loan portfolio by 2.5% compared to end-December 2016, to RON 33.1 billion (EUR 7.2 billion). On the retail segment, BCR granted new loans worth RON 4.1 billion (EUR 892 million) in the first nine months of this year. The First House program supported the guaranteed loans. On the corporate segment, BCR granted new loans worth RON 1.9 billion (EUR 413 million). Net interest income decreased by 3.3% to RON 1.31 billion (EUR 288 million). Net commission income declined by 3.2% to RON 515.7 million (EUR 113.3 million). However, the bank recorded higher income from trading and lower operating expenses. editor@romania-insider.com