BCR's profit will remain under pressure in the fourth quarter of the year, although the treasury is expected to perform better than in the third quarter, mainly because of the decline in revenues from fees, says Dominic Bruynseels, CEO of the largest bank on the Romanian market.
The decline in BCR's net profit to 6 million RON in the third quarter of the year should not be seen as surprising given that the bank supports 25% of the economy, so it cannot be immune to the shift from fast growth to deep recession, is the general explanation of the head of the bank for the third-quarter result.
As far as revenues are concerned, however, the main cause of the decline is the plummeting of those from the treasury operations, from 186 million RON in the third quarter to just 9 million RON in the July-September period.
"Third-quarter results reveal the very important effects of the changes that have occurred in the Romanian economy, which we can only counter by boosting efficiency. I don't expect the treasury operation situation to be replicated in the fourth quarter, but I expect pressure on fee-related revenues to rise, partly as a result of Ordinance 50. Undoubtedly, we will also remain under the pressure of non-performing loans and of provisions," Bruynseels said.
Net revenues from fees amounted to 123 million RON, down 23% against the third quarter of 2009.
BCR's profit will remain under pressure in the fourth quarter of the year, although the treasury is expected to perform better than in the third quarter, mainly because of the decline in revenues from fees, says Dominic Bruynseels, CEO of the largest bank on the Romanian market.
The decline in BCR's net profit to 6 million RON in the third quarter of the year should not be seen as surprising given that the bank supports 25% of the economy, so it cannot be immune to the shift fr
