BCR reported net consolidated profit in the first half of the year after taxation and minority interest payments of €206.6 million, with results in H2 influenced by the sale to Vienna Insurance Group of BCR Asigurari and BCR Asigurari de Viata for a total taxable amount of €244 million, to which are added revenue from the sale of its participation in the Asiban insurer, of €87.5 million.
“BCR’s profit in 2008 could be between €600 and 640 million. Signals indicate an increase in profit of some 30 percent in the second half from operational activity, due to a slowing in the rhythm of lending growth at the banking level,” according to a declaration for Business Standard by Adriana Marin, Director of the Analysis Department of CA IB Securities brokerage company.
An Erste Bank press release indicates that the Austrian group is expecting “slight growth” in profit this year, excluding the contribution of income from the sale of the insurance operators. The bank’s projection at the beginning of the year indicates growth of 20 percent of net profit, but the financial crisis has affected operational results, and has lead to the devaluation of many of the bank’s portfolio assets, according to the same press release. The bank is expecting operational profit to increase by some 15 percent in 2008. Erste Bank posted net profit in 2007 of €1.17 billion, up 26 percent year-on-year.
The Austrian group’s quotation on the Vienna Stock Exchange dropped 11 percent, following the announcement regarding profit.
