Erste registered a drop in the fourth quarter, due to provisions and amortizations of the goodwill fund, the group announced on Wednesday. However, BCR’s earnings are still the highest locally, amounting to €421.2 million at the group level, which also includes leasing and brokerage. BRD, the second-largest lender locally, owned by French Societe Generale group, registered €370 million in consolidated earnings, including profit from the sale of its share in Asiban insurer last year.
The bank earned €306 million from banking operations alone. The result is close to the maximum value estimated by analysts for Business Standard, who had foreseen earnings worth €340-380 million. The bank is the largest lender listed on the Bucharest Stock Exchange (BVB), and following the announcement of its financial results, the value of its shares rose 6.4 percent. Unlike many of its competitors, such as Erste and Banca Transilvania, BRD was not forced to make provisions due to an increase in defaults, which amounted to only 1 percent. The bank’s assets were worth €12.3 billion at the end of 2008, some 26 percent higher year-on-year. BRD President and CEO, Patrick Gelin, said that the bank will not lay off personnel. “We will keep investing and do not rule out opening a few branches. There is no way we will reduce our lending offer,” he added. However, he warned that “2008 is the end of a good economic cycle and the beginning of a difficult period.” The country’s top banks managed to remain profitable in the final quarter of the year, in spite of the global crisis whose effects became visible in Romania also. Lending declined, especially on the mortgage segment, as the real estate market is virtually blocked. (G.F., C.C.)
