PERFORMANCE OVERVIEW FOR BCR GROUP in H1 2013
BCR Group achieved a solid operating result of RON 1,241.7 million (EUR 282.7 million), up by 3.0% in comparison to RON 1,205.5 million (EUR 274.6 million) in H1 2012, on slightly lower income more than offset by the decrease in expenses.
The operating income decreased by 1.1% to RON 1,990.4 million (EUR 453.3 million) from RON 2,012.8 million (EUR 458.5 million) in H1 2012.
Net interest income, was marginally up 0.9%, to RON 1,442.4 million (EUR 328.4 million), from RON 1,429.0 million (EUR 325.5 million) in H1 2012.
Net fee income was up 2.9%, to RON 326.1 million (EUR 74.2 million), from RON 317.0 million (EUR 72.2 million) in H1 2012, on continuous focus on transaction banking.
Net trading result decreased by 16.8%, to RON 221.9 million (EUR 50.5 million), from RON 266.8 million (EUR 60.8 million) in H1 2012.
Operating expenses went down by 7.3% to RON 748.6 million (EUR 170.4 million) from RON 807.3 million (EUR 183.9 million) in H1 2012, owing to comprehensive optimisation measures and strict cost management.
As such, cost-income ratio improved to 37.6% in H1 2013, versus 40.1% in H1 2012.
The net charge of risk provisions for loans and advances significantly decreased further by 37.8% to RON 1,094.6 million (EUR 249.2 million) in H1 2013, versus RON 1,760.3 million (EUR 401.0 million) in H1 2012, due to lower NPL inflows. NPL ratio further rose to 29.2% of the total loan portfolio at 30 June 2013, due to contraction of the loan book, while NPL formation significantly reduced in both absolute and relative terms. NPL coverage ratio, now at 61.6%, stood significantly above 53.7% as of June 2012.
Net profit after taxes and minority interests stood at RON 556.7 million (EUR 126.8 million), versus the net loss of RON -548.5 million (EUR -124.9 million) in H1 2012, on the back of good operating result more than offsetting risk costs, also accounting for a positive one-off impact – the release of deferred tax liabilities of RON 560.8 million (EUR 127.7 million).
Solvency ratio under local standards (BCR standalone, IFRS with prudential filters) as of 30 June 2013 stood at 12.96%, well above the regulatory requirements of the National Bank of Romania (min 10%). Also, IFRS Tier 1+2 capital ratio of 18.6% (BCR Group), as of December 2012, is clearly showing BCR’s strong capital adequacy and continuing support of Erste Group. In this respect, BCR enjoys one of the strongest capital and funding positions amongst Romanian banks.
The volume of aggregate loans to customers (before provisions, IFRS) decreased by -4.3% to RON 50,945.0 million (EUR 11,421.9 million) from RON 53,243.0 million (EUR 11,979.5 million) at year-end 2012, with new lending impacted by weak demand. BCR plans to keep focus on RON lending, so as to reverse the currency mix of the loan book in favour of local currency on medium to long term and fully use the strong self-funding capacity in RON.
Amounts owed to customers slightly decreased by -3.2% at RON 36,652.3 million (EUR 8,217.4 million) as of 30 June 2013, versus RON 37,875.1 million (EUR 8,521.8 million) as of end December 2012.
Customer deposits remain BCR’s main funding source, while the bank enjoys strong support from its parent bank, at the same time benefiting from diversified funding sources and agreements with other International Financial Institutions.
BCR maintained its market leading position, despite decline in total assets by 4.9% to RON 69,723.4 million (EUR 15,632.0 million), versus RON 73,287.6 million (EUR 16,489.5 million) at 31 December 2012.
