Central bank keeps key interest unchanged at 10.25 pct
October 30, 2008
The National Bank of Romania (BNR) announced on Thursday the Board’s decision to keep the monetary policy interest rate unchanged at 10.25 pct per annum. The Central Bank Board also decided to manage liquidity so as to ensure the proper functioning of the interbank market. AGERPRES
Net profit of BCR Group, up 71.8 percent
October 30, 2008
Banca Commerciala Romana (Romanian Commercial Bank – BCR), the biggest banking group in Romania announced a net profit of 1.247 billion lei at the end of Q3 of 2008. Net profit after taxes and minority interests increased by 71.8 percent from 725.8 million lei (219.6 million euro) to 1,247.0 million lei (341.5 million euro), reads a BCR release.
According to the BCR, net interest income rose by 58.5 percent from 1,365.9 million lei (413.3 million euro) to 2,165.3 million lei (592.9 million euro). Also, the return on equity increased from 22.0 percent in the Q3 of 2007 to 32.3 percent in the Q3 of 2008, while the cost-income ratio improved from 56.0 percent in the Q3 of 2007 to 42.7 percent in the Q3 of 2008.
”We achieved very good results in line with our 2008 set objectives. We continued capturing the good opportunities of the market while successfully controlling costs and appropriately manage the risks’ said Dominic Bruynseels, BCR CEO.
‘We are striving to further improve the quality and efficiency of our business. BCR is in good shape to counteract any adverse effects of the turbulences in the international financial markets and helping our customers to achieve their aspirations’ Dominic Bruynseels underscored.
Q3 results are confirming BCR’s capacity to develop a sound and sustainable business. Q3 2008 saw a good overall loan growth. The volume of aggregate loans to customers portfolio (before provisions, IFRS) increased by 17.3 percent to 43,278.3 million lei ( 11,567.7 million euro) as at 30 September 2008 from 36,888.2 million lei ( 10,224.9 million euro) at 31 December 2007.
At the same time, total assets increased moderately by 4.0 percent from 59,611.1 million lei (16,523.3 million euro) as at 31 December 2007 to 62,004.3 million lei (16,572.9 million euro) as of 30 September 2008.
Higher growth rate of Loans to customers than of total assets is showing that more resources are dedicated to the core business (i.e. by reduction of interbank placements and financial assets).
The share of loans in domestic currency in BCR’s portfolio – 49.0 percent of total loans – is showing a well balanced structure. FX loan portfolio is only euro and US dollar denominated. Corporate Loan portfolio represents 47.1 percent in the total customer loans while Retail Loans (including micro businesses) is 52.9 percent.
Deposits from customers increased YTD September by 9.0 percent to 32,964.3 million lei (8,810.9 million euro) from 30,251.8 million lei ( 8,385.3 million euro) as at 31 December 2007. Retail deposits (including micro businesses) represent 73.1 percent in the total deposits from customers while corporate deposits are 26.9 percent.
BCR continued to expand its ATM network by adding 281 new machines from 30 September 2007 up to 1.673 units (20.10 percent YOY increase) and its POS network to 14.502 units by installing 2.519 new devices at the merchants (21,02 percent YOY increase).
Moreover, BCR continued to extend its branch network in Q3 2008 at the same time developing alternative channels. In Q3 2008 BCR opened 19 new branches, reaching to a network of 607 outlets as of end-September but also launched ‘24 Banking’ financial services whilst extending the range of services at ATM. AGERPRES
Predoiu: Organization of UIA Congress in Bucharest, proof of Romanian lawyers’ reputation
October 30, 2008
Predoiu: Organization of UIA CongrMinister of Justice Catalin Predoiu stated on Wednesday evening, in the opening of the 52nd edition of the International Association of Lawyers (UIA) Congress, that its organization in Bucharest represents a proof and is the result of the reputation enjoyed at present by this legal profession worldwide. Read more
Tariceanu: Salary problem cannot be solved by strikes
October 29, 2008
PM Calin Popescu-Tariceanu said, on Wednesday, that the problem of salaries in state-run companies cannot be solved by strikes, he believes dialogue is good for that. ‘Such problems are approached during dialogue, they have to be talked about, as it is normal, and I am inviting the unions to dialogue, ‘ the prime minister said, during a visit to Prahova County. Read more
President Basescu: Educational system, a priority for Romania
October 28, 2008
President Traian Basescu reiterated late on Tuesday that the educational system is a priority for Romania and he argued in favour of a radical reform of the sector. Read more
