Unicredit Tiriac Bank posts EUR 40 mln net profit in Romania as provisions go down

UniCredit Tiriac Bank ended 2012 with a net consolidated profit of some EUR 40 million, up 11.3 percent on 2011, as revenues increased and provisions went down, according to the bank. The bank's operational revenues were up 2.1 percent, to some EUR 280 million, with revenues from interest being negatively impacted by a drop in reference index and the margins for loans. Meanwhile, financing costs went up, and were only partially offset by the 9 percent increase in financing volume.

“In the year 2012, when the economic growth was merely symbolic, when lending went down and the banking system suffered losses, we managed to post a real two digit growth, we balanced loans with deposits attracted from clients, we were very careful with potential risks […],' said Rasvan Radu, CEO UniCredit Tiriac Bank (in picture). Operational expenses were up 3.6 percent, which also included the relocation to new headquarters – on Expozitiei Blvd., close to Romexpo. Net provisions for financial assets, meaning mainly loans, were down 4.2 percent on the year before. The rate of non-performing loans was of 12.2 percent, up from 11.7 percent in 2011, while the cost of risk was down to 188 basis points, from 204 basis points in 2011. UniCredit Tiriac Bank's assets reached EUR 5.7 billion, an increase of 9.8 percent throughout 2012. Loans on the balance sheet were up 9.2 percent to some EUR 3.8 billion, while externalized loans were at some EUR 584 million. Loans evolved differently depending on type, with corporate loans up 12 percent, small and medium enterprise loans up 54 percent, while mortgage loans stayed flat and consumer loans were actually down 10 percent. Deposits enjoyed higher increases, reaching some EUR 3.1 billion, a growth of 20 percent on the end of 2011, with the biggest growth – 28 percent – on the retail segment. The group's total assets – including the bank's, leasing and consumer financing arm – were at EUR 6.4 billion, a growth of 8.2 percent on the end of 2011. UniCredit Tiriac Bank has 208 subsidiaries in Romania and serves 591,000 clients. editor@romania-insider.com (photo source: UniCredit)