BCR contributes with over 25 percent to Erste net profit in 2008

The contribution from Romanian activities to Erste Bank’s net profit increased 24.1 percent in the first quarter of 2008, from 14.7 percent in Q1 2007.

“Romania offers opportunities for an increase in business and profit. We plan to become the main contributor to Erste Bank’s profit in the coming two years,” said BCR’s Chief Executive Officer, Manfred Wimmer.

BCR bank posted net profit worth RON 382.7 million (€103.6 mln) in the first quarter, almost double compared to Q1 2007. The bank plans to reduce the cost/income ratio to below 40 percent.

In terms of net profit contribution to owner Erste group, BCR ranked second, after the Czech division, Ceska Sporitelna.

Wimmer, who served as interim CEO of BCR since December 2007, will be taking over as Chief Financial Officer (CFO) of Erste Bank in September. He will be replaced by Dominic Bruynseels, who brings 27 years of experience with Barclays Bank to the Romanian bank. By 2009, BCR will be listed on Bucharest’s stock exchange.

The bank’s plans include regaining its market share, in terms of assets, and expanding its territorial units by over 90 new units this year, to 670-700 locations. “BCR is the Romanian banking market leader, even if it lost two-three percent of the market on certain segments to smaller banks, who are willing to raise their market share at any price,” said Wimmer.

The corporate segment is one of the growth factors. The bank’s total assets increased by a mere 2 percent in the first quarter of 2008, to RON 60.69 billion (€16.28 bln), while the number of employees was reduced by 2.9 percent.