Romanian subsidiary of Credit Agricole posts EUR 6 mln losses, cuts staff by over 10% in 2012

Credit Agricole Romania recorded an overall EUR 6 million net loss in 2012, a similar figure to 2011, according to the bank's annual financial results. The bank also cut its number of employees by 12 percent last year. Total assets, however, increased on the previous year, up by EUR 34 million to EUR 292 million – a 13 percent year-on-year rise.

Customer loans and deposits were also higher: loans rose by 14 percent to reach EUR 241 million while customer deposited recorded a chunky 56 percent increase to hit EUR 113 million by the end of 2012. The net commission income was up 7 percent in 2012 year-on-year and loan impairments fell by 6 percent; the cost of risk was below the 100 bps level. Credit Agricole Group became the main shareholder of the Bank in 2012 as share capital reached EUR 54 million after a EUR 40 million increase over the last three years. Commercial deposits were up 56 percent in 2012 on the previous year, resulting in a 9 percent decrease in the commercial gap. Credit Agricole Romania increased its loans market share by percent in 2012. Operating expenses decreased by 6 percent on the previous year, as the bank continued to invest in technology and process optimization. “The contraction of the costs was made without affecting the business development,” according to Credit Agricole Romania. In Romania, Credit Agricole took over Emporiki Bank in 2006 and has spent over EUR 5 billion since to consolidate its capital base. Recently, many Emporiki branches have been re-branded as Credit Agricole. Last year Pierre Martin, CEO of the bank in Romania (in picture) said, “I don’t know how the economic environment will be in 2012. For this year, we are targeting flat profitability.” Credit Agricole Group is based in France and has operations in 50 countries. In total, the group has 51 million customers, 1.2 million shareholders, 6.9 million mutual shareholders and 150,000 employees. editor@romania-insider.com (photo source: Credit Agricole)