BCR earns net profit worth 699.5M lei till end-Sept.

The operational result went up to 2.223 billion lei, namely 528 million euros, during the first three quarters of the year 2009, by 24.9 percent higher than over the first nine months of 2008.

The main engine was the rise in the operational revenue, by 387.4 million, or by 12.5 percent higher than that during the first nine months of 2008, while the operational expenditures scored a moderate drop of 55.3 million lei, or minus 4.2 percent compared to the end of Q3, in 2008, as the bank continued to expand its network of units and amid the depreciation of the Romanian currency.

The cost-revenue ratio improved to 36.3 percent in the Q3 of 2009, compared to 42.7 percent in end-September 2008. The return on equity (ROE) went down to 14.5 percent in Q3 of 2009, as expected, vs. 31.1 percent in end- Sept 2008, under the circumstances of a difficult economic environment. The non-performing loans (NPL) continued to grow, as expected, against the backcloth of the adverse market conditions that were affecting the clients, but they stayed within the control margin, at a comfortable coverage rate of 120 percent, including guarantees and provisions. The developments in the NPL caused a rise in the risk-related costs up to 1.486 billion lei, namely almost four times the value scored over the first three quarters of 2008, while in the balance sheet, the provisions for the credits grew by 37.6 percent compared to late in 2008, mirroring the expectedly effective losses.

BCR bank recorded an increase in the market share for crediting, of up to over 22 percent, by end-Q3 of 2009, compared to late in Sept 2008, the main contributor being the growth of the corporate loans. The Bank owns a strong liquidity and has an improved offer adjusted to the economic context. The retail crediting preserved the general market quota it had scored in end 2008. As for the balance sheet liabilities, BCR registered an improvement in its market shares compared to that in end 2008, mainly thanks to a better evolution of the forex deposits, encouraged by the competitive price policy BCR was conducting and by the force of its brand. The retail activity is self-financing, the loan-deposits ratio (the long-term debt -LTD) amounting to round 85 percent.