4. Raiffeisen Bank 76 million

Raiffeisen Bank Romania, one of the country’s biggest lenders, posted a net gain of €74 million in a year that saw a market-wide increase in loan impairment charges and a steep downturn in the banking system.

In 2008, the bank had reported a net profit of €165 million, from €94 million in 2007.

“I believe we achieved a pretty good result, given the challenging economic climate. The decline reflects the sharp increase in bad loans provisions that almost doubled in 2009, but we managed to offset it by a healthy cost management and achieved a 7.4% cut in expenses”, said Steven van Groningen (photo), chairman of Raiffeisen Bank Romania.

Raiffeisen Bank’s total assets increased to €4.692 billion, as the bank outsourced loans worth €1.5 billion.


3. UniCredit Tiriac Bank - 78 million

UniCredit Tiriac Bank recorded a net profit of €78 million in 2009, down 8% from a year earlier, according to the International Financial Reporting Standards, on 84% increase in bad loan provisions, from 140 million lei to 257 million lei.

“Last year, we only lent small and medium enterprises that needed working capital, and I think we will continue this strategy this year too. The demand for investment loans will not pick up, at least until the second half of the year. 2010 will be a difficult year for SMEs”, said Rasvan Radu (photo), CEO and chairman of UniCredit Tiriac Bank.

UniCredit Bank’s loan book narrowed 2% in 2009 to 12.1 billion lei, while deposits increased by 23% to 10.7 billion lei.

2. BCR 206.3 million

BCR, the country’s biggest bank by assets posted a consolidated net profit of €206.3 million, down 57.1% from 2008, on rising loan impairment charges.

“In 2009, we achieved a 32% increase in operating profit. Due to higher loan loss provisions, our shareholders didn’t record the same improvement in results, due to the challenging economic environment. Our solid position in the market, strengthened by our efficient business model, cash flow and sound lending policy, customer base and our parent bank Erste Bank, allows us to continue helping our customers even under tough economic conditions”, said Dominic Bruynseels (photo), chief executive of BCR.

BCR’s loan book increased by 3.3% in 2009, to 46.53 million lei. However, non-performing loans accounted for 13.1% in total bank lending at the end of 2009.

1. BRD - 230.8 million

BRD – Groupe Societe Generale’s 2009 net income stood at €230.8 million, calculated according to the International Accounting Standards. BRD achieved the biggest profit in the banking system but retains its second spot by assets, after BCR.

“2009 was an experiment, it was a year marked by macroeconomic uncertainties. In 2009, banks had to cope with unrelenting pressures to ensure the profitability of operations and minimize risks, while facing an extremely low demand for banking services”, said Guy Poupet (photo), chairman of BRD.

BRD halted its expansion last year, its network now comprising 930 outlets – the second largest network in Romania after CEC bank. The bank has also cut headcount by 3.8% from 9,443 to 9,080.