DESPITE SIZEABLE PROVISIONS, Erste Group makes EUR 232 million profit, beating expectations

Ana Săbiescu

Erste Group"s net profit for Q1 2009 after minorities was EUR 232.1 million, down 26.5% YOY, due to a 126% increase in provisions for non-performing loans. Erste"s provisions at the end of March 2009 amounted to EUR 370.2 million. The Austrian group"s net profit in Q1 2008 was EUR 315.6 million.

Results posted by Erste beat analysts" estimates of a net profit ranging between EUR 57 million and EUR 297 million, with an average consensus of EUR 170 million.

Andreas Treichl, Chairman of the board of "Erste Group Bank", said: " The first quarter results provide a solid base for assessing the position of Erste Group in the current crisis".

The bank"s operating results grew 10.3%, up to EUR 838.5 million, due to the sizeable increase of net interest and net trading income.

Thus, the bank"s net trading result for Q1 2009 rose 74.4% YOY, to EUR 143.8 million.

Net interest income, which is the main revenue source for the bank, rose 6.5% YOY in Q1 2009.

On the other hand, net fee and commission income dropped 9.6% YOY in Q1 2009, to EUR 491.9 million. Erste Bank"s total assets declined slightly in Q1 09 and amounted to EUR 199.1 billion as of March 31st, 2009, a fall of 1.2% compared with year-end 2008, resulting from a decrease in interbank business, the Austrian company said.

BCR posted a 330 million lei profit in Q1 2009

The net profit of BCR (Romanian Commercial Bank) after taxes and minorities posted for Q1 2009 dropped 13.7% YOY, to 330.3 million lei, according to the bank"s financial statements.

BCR"s total assets increased 4% YOY in Q1 2009, up to 71.865 billion lei.

The operating revenues increased 11.8% in Q1 2009, to 1109.2 million lei, whereas operating expenses rose 11.7%, to 438.1 million lei.

BCR"s net interest income rose 28.7%, to 881.2 million lei, in Q1 2009, whereas net fee and commission income dropped 27.9%, to 179 million lei.

Provisions set up by the bank rose 2.6 times in Q1 2009 YOY, up to 308 million lei.

BCR"s loan portfolio increased 3.3% YOY, to 46.533 billion lei, compared to 45.027 billion lei at the end of 2008.

Deposits from customers rose 1.2%, to 33.758 billion lei, from 33.35 billion lei at the end of 2008.