The bank’s management is also hoping for a favorable evolution of its business this year. “Although we are expecting a more challenging economic future, we remain optimistic in terms of the bank’s capacity to maintain a favorable evolution. Our optimism is sustained by a cautious policy, based on rigorous control of costs and careful analysis of risk,” said Catalin Parvu, the bank’s Chief Executive Officer. The volume of loans administered by Piraeus Bank Romania at the end of 2008 amounted to some €3.7 billion, up 56 percent year-on-year, and the bank set up a corresponding level of risk provisions. Last year’s deposits registered a record high of 82 percent, in spite of the evolution of the local market in the last part of the year, indicated the bank, exceeding €1 billion in December 2008.
The profitability of return on equity (ROE) was 12.2 percent, up 2.3 percentage points compared to December 2007, while the bank had a social capital of €270 mln. The cost-revenue ratio at the end of the year was 47.8 percent. Arrears on loans in excess of 90 days in December amounted to €61.5 mln, but were covered by provisions worth €57.3 mln, collateral guarantees of €33.8 mln, and other individual and corporate guarantees, according to data published by the mother group. Of total arrears, €45.3 mln are on the retail segment.
The number of cards issued by Piraeus Bank Romania rose in 2008 to over 100,000, up 106 percent year-on-year.
