Carpatica, a medium-sized bank controlled by Sibiu-based businessman Ilie Carabulea, ended the first half of the year with a positive result, after posting over 11 million-RON losses in the first three months of the year.

"The first half was a good one, we ended it with a positive result," said Nicolaie Hoanta, general manager of the bank, at a press conference organised with the occasion of the bank's ten-year anniversary. He says the return to profit came amid major cost cuts, but he did not provide any figures, considering that Carpatica shares are listed on the Bucharest Stock Exchange. In the first five months of the year, the bank posted a 12 million-euro net profit, according to bank sources.

The bank has not opened any new territorial branches, has renegotiated rent, and has also targeted internal processes in its drive towards effectiveness. In addition, Carpatica had lower provision-related expenses, which had significantly affected its results in previous quarters.

"Here is what we did well in 2008 - we set aside significant amounts of provisions, even above what could be fiscally deducted. We have still provisions to sets aside, but it is important to keep a balance. (...) We are considering the same coordinates for the second half of the year: cost cutting and prudent credit management," said Hoanta.

For the time being, he says he is focusing on boosting revenues obtained from charging commissions on services. For instance, he says the bank derives a good amount of revenues from forex operations and from money transfer operations, with bill payments at the bank's branches also being encouraged in the coming period.

Carpatica has a 245-branch network, having expanded aggressively in 2006 and 2007, when the retail market was in full development, and most banks were making efforts to get as close to their clients as possi