Last year, "UniCredit Ţiriac Bank" had a net profit of 159.4 million lei (38 million Euros), according to the international reporting standards (IFRS), down 6.9% over the previous year, according to a press release by the bank. According to the domestic accounting standards, the bank had a net profit of 103.1 million lei, up 80,3% compared to 2010, the press release also states.
Last year, the Romanian banking system had a loss of 434 million lei.
The operating revenues of "UniCredit Ţiriac Bank" fell from 1.363 billion Euros in 2010 to 1.223 billion Euros last year, in spite of an increase in the loan portfolio, which boosted its market share on this segment from 7.1% to 7.7%. The main cause of the lower revenue is the drop of the interest revenues, amid an increase in the funds attracted. Even though it increased, the ratio between the cost of borrowing and earnings has remained steady at 49.9%, below the market average of 57.7%, according to data provided by the banking group.
The annualized ROE was 6.5%, down 1% compared YOY, whereas the return on assets amounted to 0.7% in 2011, according to the press release by "UniCredit Ţiriac Bank". The bank's market share on the deposits segment increased slightly to 5.6%.
The bank's commissions earnings increased over 10%, due to an increase in the volume of processed transactions, the press release states.
Last year, operating expenses increased 4.5%, due to the hike of the VAT, of the contributions required by the Bank Deposit Guarantee Fund, as well as of the opening of new branches, "UniCredit Ţiriac Bank" informs.
The solvency ratio of the institution fell to 11.4%, below the market's median of 14.5%, but above the minimum requirements of the NBR (10%). The net provisions for the financial assets (mostly customer loans) fell 24% in 2011 over 2010, according to the report.
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