BRD-SocGen, the second largest bank in Romania by assets, posted 122 million lei (29 million euros) in net profit in the first quarter, down 38% compared with the same time of last year, largely because of the decline in operating revenues, while general spending, as well as provisions slowed down.
"The first three months of 2011 did not bring the rebound the market had expected, with the difference compared with the last part of last year being insignificant.
Economic activity is still hurting, thus influencing demand for banking services," says Guy Poupet, chairman and CEO of BRD.
The revenues of the bank fell 14% to 787 million lei, while the cost of risk dropped 10% to 292 million lei. The results are calculated separately for the bank, in line with the local accounting standards.
"The net profit was saved by the really big decline in provisions. The negative surprise as far as revenues are concerned was quite big across all lines," comments Adriana Marin, head of the research department of UniCredit CA IB Securities brokerage.
On the other hand, the decline of spending on provisions is a first positive signal of 2011, BRD's Guy Poupet believes, who hopes it will continue throughougt the year.
BRD-SocGen, the second largest bank in Romania by assets, posted 122 million lei (29 million euros) in net profit in the first quarter, down 38% compared with the same time of last year, largely because of the decline in operating revenues, while general spending, as well as provisions slowed down.
"The first three months of 2011 did not bring the rebound the market had expected, with the difference compared with the last part of last year being insignificant.
Economic activity is still hurting, thus influencing demand for banking services," says Guy Poupet, chairman and CEO of BRD.
The revenues of the bank fell 14% to
