"UniCredit Ţiriac Bank" sees a profit of 38 million Euros in 2011

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.

Assets of "UniCredit Ţiriac Bank" rose to 22.9 billion lei (5.3 billion Euros) at the end of last year, up 9.9% over December 31st, 2010. The volume of loans climbed 17.2% in 2011 over the previous year, to 15.9 billion lei (18.6 billion lei including the portfolio of outsourced loans), the bank group informs. Lending on the corporate segment increased 20% last year compared to 2010, 33% on the SME segment, and 20% on the mortgage loan segment, the report states.

Attracted deposits amounted to 11.5 billion lei at the end of 2011, up 5% YOY, according to the press release. The individuals segment has the largest advance, according to "UniCredit Ţiriac Bank". The loan to deposits ratio stood at 138% at the end of last year, according to the information provided by the lender. The total assets of "UniCredit Ţiriac Bank", "UniCredit Leasing Corporation" and "UniCredit Consumer Financing" stood at 26.1 billion lei in 2011, up 9.7% over December 31st, 2010, and the net consolidated profit of the group stood at 158 million lei, up 8.8%, according to the press release. The bank's share capital increased 5.6%, to 2.5 billion lei.

The weight of non-performing loans in the total portfolio rose to 11.7% last year, from 10.8% in 2010, the report shows. On the other hand, the annualized risk cost decreased to 204 basis points, from 294 basis points in 2010, according to the press release.

The loans were covered by provisions to the tune of 8.3% last year, up over the previous year, whereas the volume of rescheduled loans amounted to 17% of the portfolio, below the 2010 level, the bank informs.

In 2011, the bank opened 10 branches, which puts its total branch count at 245, but kept the number of employees at 3,000, the press release states.