BCR reports H1 loss of 20.8 ml lei due to provision for BpL

BCR reported a net loss of 20.8 million lei (4.4 million euro) in H1 2019 as a result of the exceptional provision set aside in connection with the activity of the 'BCR Banca pentru Locuinte' housing bank, the lender said in a Wednesday release. 

Romania's High Court ruled in June this year that the BCR housing bank did not comply with the law requirements regarding the payment of state premiums for the clients of the home savings and loan plan (bauspar). BCR owner Erste Group Bank announced last month that it will set aside up to 230 million euro following the ruling of Romania's top court regarding the business activities of its local subsidiary 'BCR Banca pentru Locuinte'. 

According to the BCR release, the bank's operating result of 822 million lei (173.3 million euro) was by 10.9 percent higher compared to H1 2018, on the back of higher operating revenues. 

The net interest income increased by 15.4 pct to 1.110 billion lei (234.1 million euro), the net fee income was 5.6 pct higher YoY at 368.9 million lei (77.8 million euro), and the operating income increased by 9.6 pct to 1.690 billion lei (356.4 million euro). 

BCR's total loan portfolio was 8 pct higher YoY, due to both the retail and corporate segments. 

As of June 30, 2019 customer deposits were by 0.6 pct higher at 55.427 billion lei (11.707 billion euro) compared to 55.099 billion lei (11.815 billion euro) as of December 31, 2018; the growth was determined by the increase in retail deposits. 

BCR offers a complete range of financial products and services through a network of 21 business centers and 22 mobile offices dedicated to companies and 482 retail units located in most of Romania's cities with more than 10,000 inhabitants.