Banks post profits similar to 2007, but with change of strategy

 The crisis forced the five players, who own more than half of the assets of the Romanian banking system, to adapt to market conditions and change their strategies.

UniCredit Ţiriac Bank announced yesterday a two percent rise in net profit, up to RON 181 million (€43.1 mln). The lender’s management indicated that the results were very good, considering the sharp decline in economic activity, industrial production, sales, and demand, as well as rising lending risks.

“It is very important to anticipate and react quickly in times of crisis, maintaining a balance between the main business priorities. We focused on raising the liquidity level and balancing the loan/deposit ratio, continuing lending, and keeping profitability at a stable level,” Chief Executive Officer of UniCredit Ţiriac Bank, Răsvan Radu, said. In 2007, banks relied mostly on loan demand, and profits came from interest rates and fees. However, the first half of 2009 showed that the profit of banks was significantly affected by financial operations.