- Operating profit of 21.7 million lei, increasing by 77.8 per cent in comparison with the previous year
- Net loss of 3.7 million lei, influenced exclusively by bank management decision to increase provisions calculated in prudential purpose
- Plans to resume commercial activities on core market segments in 2015
The main achievement of BCR Chisinau in 2014 was the increase by 77.8% of the operating profit in comparison with the yearly result of 2013. The operating profit in 2014 amounted to 21.7 million lei. This performance was due mainly to the concentration of bank efforts to improve customer service and to enlarge products and services portfolio. The operational income increased by 11.0%, while the general and administrative expenses decreased by 4.7%, as a result of cost efficiency and restructuring process started in 2013.
Following the bank management decision to increase provisions, calculated in accordance with international financial reporting standards (IFRS) and strict prudential requirements applied in BCR/ Erste Group, BCR Chisinau ended 2014 year with a net loss of 3.7 million lei. In this context, the coverage on nonperforming loans by provisions calculated according to IFRS has increased from 17.5% in 2013 to 37.5% in 2014. These measures have been adopted taking into account the macroeconomic trends within the country, in compliance with credit risk management policy and bank management vision to ensure durability and sustainability of the business and to establish adequate protection against eventual risks.
"The operational performance of BCR Chisinau in 2014 improved significantly. At the same time the net result was negative, due exclusively to the prudential decision of the bank management to increase risk provisions, taking into account the requirement to ensure durability and sustainability of the business, and to increase the coverage rate of nonperforming loans by calculated provisions. This measure was adopted in strict accordance with IFRS with the aim to reflect the actual financial situation and to ensure sufficient protection. As part of BCR/ Erste Group we are interested to follow prudential requirements and to be transparent in reporting.
In 2014, the bank has finalised the restructuring process started in 2013, improved its operational efficiency, consolidated its commercial capabilities in order to resume its commercial activity. Our aim for 2015 is to continue consolidation of bank positions on corporate clients segment and to enhance cooperation with the employees and partners of our corporate clients by enlarging the range of solutions offered by the bank, both in lending and transactional banking. We plan to resume our commercial activities on core market segments. Our strategic priority remains to be a reliable partner for our international and local clients and to take advantage of our statute as BCR/ Erste Group member", said Juan Luis Martin Ortigosa, CEO at BCR Chisinau.
The financial situation of BCR Chisinau remains robust, as the main indicators increased. The total assets of the bank amounted to 1078.2 million lei, increasing by 9.8% in comparison with the end of 2013. At December 31, 2014 the deposits portfolio amounted to 513.9 million lei, increasing by 4.8% in comparison with the end of 2013. The total capital of the bank at December 31, 2014 amounted to 383.5 million lei, increasing by 33.6% in comparison with the end of 2013. The Total Normative Capital of BCR Chisinau at December 31, 2014 amounted to 304.8 million lei, increasing by 18.6% in comparison with the end of 2013. Therefore, the capitalisation of the bank remains high and will easily absorb the increased provisions and will remain solid to support the healthy growth of all business lines of the bank in subsequent years.
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Banca Comercială Română Chişinău S.A.:
BCR Chişinău S.A. started its activities on October 22nd 1998 and is one of the first banks with foreign capital participation, member of an international financial group, to expand its activities in Moldova. The bank has a network of 2 branches and 40 ATMs and serves both legal entities and individuals. Banca Comerciala Romana S.A. (Romania), member of Erste Group (Austria) is the unique shareholder of BCR Chisinau S.A.
Banca Comercială Română S.A.:
Is the leader of Romanian financial market with total assets of more than 14.4 billion EUR. Is no 1 bank in terms of clients portfolio and no1 bank in terms of lending and savings. BCR is the most valuable financial brand in Romania in terms of client recognition and number of persons for which BCR is the main banking institution.
Erste Group:
Is one of the main financial service providers in Central and Eastern Europe. The Group employs more than 44.000 persons, serves more than 16.5 million clients and has a network of more than 2.8000 branches in 7 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia, Serbia). At the end of Quarter 3, 2014 total assets of Erste Group amounted to 197 billion EUR.
For additional information on BCR Chişinău S.A.:
Str. A. Puşkin 60/2 MD2005 Chişinău
Tel. +373 (22) 852 000; Fax. +373 (22) 852 002
E-mail: office@bcr.md
www.bcr.md