Hungarian MKB reports EUR 153 mln loss in Romania for last year

Hungarian group MKB ended 2010 with a total net loss of about EUR 153 million, five times higher than in 2009, resulting from all its subsidiaries in Romania. At an operational level, the group, which owns Romexterra Bank - rebranded as MKB Nextebank, Romexterra Leasing and Corporate Recovery Management in Romania, also recorded losses of EUR 22.4 million locally, compared to an operating profit of EUR 12.3 million in 2009. The negative result was recorded due to a sharp decrease in revenues, while expenses remained stagnant despite the staff restructuring measures which were adopted last year, according to the bank.

The cost/income report exploded to 240 percent in all local affairs, while the operating income decreased by 67 percent to EUR 16 million, while provisioning expenses totaled EUR 127 million, according to MKB. Romexterra Bank has been eebranded under the name MKB Nextebank. To reduce costs, the bank fired more than 200 people, remaining with 682 employees. At the end of 2010 the bank had a network of 44 units. Since February last year, the bank is headed by Dan Sandu, 42, installed as CEO, whose main tasks are to strengthen the management and lead to business recovery. Irina Popescu, irina.popescu@romania-insider.com (photo source: Corina Saceanu/Romania-Insider.com)