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BCR Group closes 2023 on net profit up 33pct
Banca Comerciala Romana BCR Group has reported a net profit of RON 2,321 million (EUR 469 million) in 2023, up 33% from RON 1,746 million (EUR 354 million) in 2022, driven by improved operating result underpinned by advance in customer business, according to a press statement released on Thursday by the group
Operating result improved by 17.2% to RON 3,206 million (EUR 648 million) in 2023 from RON 2,735 million (EUR 555 million) in 2022, on higher operating income, partly offset by increased operating expenses.
Net interest income increased by 24.0% to RON 3,656 million (EUR 739 million) in 2023, from RON 2,949 million (EUR 598 million) in 2022, driven by higher business volumes and market rates.
Net fee and commission income improved by 7.2% to RON 1,013 million (EUR 205 million) in 2023, from RON 944 million (EUR 191 million) in 2022, driven by increased fee income from corporate lending as well as higher securities and insurance fees.
Net trading result dropped by 12.5% to RON 552 million (EUR 112 million) in 2023, from RON 630 million (EUR 128 million) in 2022, on lower trading activity.
Operating income increased by 14.3% to RON 5,273 million (EUR 1,066 million) in 2023, from RON 4,615 million (EUR 936 million) in 2022, driven by higher net interest income as well as higher net fee and commission income.
General administrative expenses reached RON 2,067 million (EUR 418 million) in 2023, up by 9.9% as against RON 1,880 million (EUR 381 million) in 2022, on higher personnel expenses generated by the inflationary environment. As such, cost-income ratio improved to 39.2% in 2023, versus 40.7% in 2022.
Impairment results from financial instruments reflected a provision allocation of RON 46 million (EUR 9 million) in 2023, significantly lower as against the allocation of RON 394 million (EUR 80 million) in 2022. The current result mainly consisted of collective provisions booked for the performing portfolio, while the provision releases driven by further collection activities in both retail and corporate segments fully offset the allocations for regular new defaults.
Non-performing loan (NPL) ratio stood at 2.9% as of December 2023, stable against 2.8% as of December 2022. This evolution is reflecting the recoveries and healings in both retail and corporate segments which counterbalanced the regular NPL formation. At the same time, the NPL provisioning coverage was 168.7% as of December 2023.
Solvency ratio for BCR Bank standalone, according to the capital requirements regulations (CRR) stood at 22.5% as of December 2023, well above the regulatory requirements of the National Bank of Romania. Furthermore, the Tier 1+2 capital ratio of 20.8% (BCR Group) as of December 2023 is clearly reflecting BCR's strong capital and funding positions.
Net loans and advances to customers increased by 6.2% to RON 58,743 million (EUR 11,806 million) as of 31 December 2023 from RON 55,329 (EUR 11,179 million) as of 31 December 2022, supported by both retail and corporate segments.
Deposits from customers increased by 3.8% to RON 78,482 million (EUR 15,773 million) as of 31 December 2023 from RON 75,589 million (EUR 15,272 million) as of 31 December 2022, on an increase in both retail and corporate deposits.
BCR offers a full range of financial products and services through a network of 20 business centres and 18 mobile offices dedicated to companies and 318 retail units located in most of the country's cities with more than 10,000 inhabitants, where 63% of units are cashless. BCR is Romania's No.1 bank in the transaction banking market, with BCR customers having the largest national network of ATMs and multifunctional machines - almost 2000 machines, and full banking services through Internet banking, Mobile banking, Phone-banking and E-commerce.