BCR, the biggest local financial group, ended the first quarter with a modest net profit, 76.1 million lei (about 18 million euros), with the persistent difficult economy showing in the final result, which accounts for less than one third of the income in corresponding period of 2010.
BCR officials, however, note that revenues went up compared with the fourth quarter in 2010, which allowed the group to stop making losses.
"The difficult economic context continues to have a negative impact on our clients and on BCR," says Dominic Bruynseels, CEO of the BCR group.
Provision spending remained high at 457 million lei (some 109 million euros). Unlike the last three months of last year, BCR, however, managed to boost operating revenue by 8% to a little more than one billion lei (241 million euros).
"A lending market that is still weak, with volumes that aren't higher than last year and probably a lower interest margin affected interest revenue. I don't think the second quarter will look significantly better," says Florin Ilie, head of the capital markets department of ING Bank that monitors the financial results of the Austrian Erste group, BCR's main shareholder, which is also listed on the Bucharest Stock Exchange.
BCR, the biggest local financial group, ended the first quarter with a modest net profit, 76.1 million lei (about 18 million euros), with the persistent difficult economy showing in the final result, which accounts for less than one third of the income in corresponding period of 2010.
BCR officials, however, note that revenues went up compared with the fourth quarter in 2010, which allowed the group to stop making losses.
"The difficult economic context continues to have a negative impact on our clients and on BCR," says Dominic Bruynseels, CEO of the BCR group.
Provision spending remained high at 457 million
