After 1 Year In Business BCR BpL Reaches 2 Bln RON In Contract Value

BCR Banca pentru Locuinte (BCR BpL), the housing loan unit of Banca Comerciala Romana (BCR), concluded the first year in business (July 2008 - July 2009) with over 91,000 saving-borrowing contracts for home acquisition worth nearly 2 billion RON and is planning to reach 130,000 contracts by the end of the year.

Based on the saving-borrowing contracts, BCP BpL customers saved over 65 million RON in the past 12 months. The three saving-borrowing plans offered by BCR BpL are Savings Plus, Home Plus and Home Right-Away. The State currently offers a premium of 25% of the annual savings, but no more than 250 EUR in RON equivalent for each customer.

BCR BpL Executive Vice President Carmen Schuster said the results were beyond the expectations of the shareholders, who continued to invest in BCR BpL in line with the business plan. The bank has increased capital by 25 million RON this year and is planning to add another 13 million RON in 2010.

"We started our first year with losses that were 25% below what had been estimated in the business plan as a result of strict cost management," Schuster added. According to her estimates, the bank will start making a profit in 2011, after three years in business. BCR BpL currently has a share of over 80% of the market for newly signed saving-borrowing contracts and shares the market with Raiffeisen Locuinte.

Banca Comerciala Romana (BCR) is the majority shareholder in BCR BpL with 80%, followed by S Bausparkasse der oesterreichischen Sparkassen, the saving-borrowing arm of Erste Group, with 20%.