The bank’s profit literally melted due to provisions set in the first six months, which amounted to RON 452.7 mln, up 94 percent from the end of last year. The lender’s net profit plunged 90.1 percent, to RON 11 mln (some €2.61 mln), from RON 111.4 mln in H1 2008.
In a statement sent to the Bucharest Stock Exchange (BVB), the lender indicated that it did not resort to reducing gross exposures, by cutting 25 percent of the value of collaterals attached to loans with arrears exceeding 90 days or which are subject to legal proceedings.
“We are trying to adjust, and restructure the loans of clients with problems. So far, we have not sold non-performing loans, nor have we outsourced the receivable collection activity. Most poor-performing loans are on the small and medium-sized enterprise segment, traditional clients of our bank, and on the retail segment,” Banca Transilvania’s General Manager, Robert Rekkers, told Business Standard.
According to the bank’s statement, at the end of June, non-performing loans made up 3.18 percent of the total loan portfolio, whose value was RON 11.3 billion (some €2.68 bln).
