Most experts say the bank’s profit will exceed the €200 mln threshold. Last year, the company’s profit was boosted by the sale of a 25 percent share package of the Asiban insurance company for €62 mln, while this year, the crisis will put pressure on the bank’s results.
“In terms of profitability, I expect a drop to RON 400 million, especially due to the depreciation of the quality of owned assets,” said Adrian Danciu, Analyst for Broker Cluj. The main unknown is the level of provisions and the share of poor performing loans, said Adriana Marin, Head of the Analysis Department of CA IB Securities, who is considering a 108 percent growth rate of provisions.
“For BRD we estimate a net profit worth RON 859 million (according to Romanian accountancy standards), down 24 percent from the net income registered in 2008, without including the profit from the Asiban sale. We considered an annual nine percent increase in net interest rates, compared to the 34 percent rise in 2008,” said Manuela Ogrinja, Financial Analyst of EFG Eurobank Securities.
