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CEC Bank's H1 net profit at 110.8 ml RON

CEC Bank posted an estimated, unaudited net profit of 110.8 million RON in H1 2022, the bank announced on Tuesday.

According to the cited source, the bank continued to strengthen its position on the market, and saw its assets go up to 53.3 billion RON - plus 20 pct compared to the same period last year.

"For the economy and the banking system, the second quarter was one of the most challenging in the last decade. (...) CEC Bank has proven that it can quickly adjust to the new challenges in the context of inflationary pressures, coupled with a decrease in market liquidity. We continued to finance the economy - with new loans worth over 5.5 billion RON granted in the first semester, and to strengthen our position on the market. At the same time, we rapidly increased our deposit interests to as much as 7.7 percent per annum, because we believe that we must have a fair approach to depositors. For now, we do not see an increase in non-performing loans and we have not faced a significant volume of requests for repayment forbearance. We continue to stay close to entrepreneurs and clients in order to help them overcome the difficult times. We carefully follow macroeconomic developments and market signals and are prepared to respond quickly," said CEC Bank CEO Bogdan Neacsu.

Net income from interests and fees increased by 20.5 percent compared to the same period last year, up to 1.2 billion RON, as deposit rates increased at a faster pace than those for loans.

The gross balance of loans granted to customers amounts to 29.3 billion RON, up 20 percent compared to the same period of 2021.

Customer deposits increased by 28.3 percent compared to the end of H1 2021, reaching 47.5 billion RON.

CEC Bank continued to support the economy, financing companies and households with over 27,000 new loans in the first semester of 2022, with a cumulative value of over 5.5 billion RON.

Also, the bank granted 1.5 billion RON in investment loans for companies and also offered financing to over 21,000 individuals, for various projects.

The value of new retail loans granted in H1 exceeds 1.35 billion RON, with housing loans accounting for over 64 percent.

The bank's loan portfolio remains healthy, with the rate of non-performing loans standing at 4.88 percent at the end of June 2022, down from 5.38 percent in the same period last year.

The bank maintained a prudent approach and recorded net expenses with provisions/adjustments related to loans granted to non-bank customers (including the expense with adjustments for impaired receivables) worth 220.4 million RON in H1.

The total own funds ratio was around 21.07 percent at the end of Q2. The rate of return on equity (ROE) was 6.61 percent, up from 5.97 percent at the end of the first quarter.

CEC Bank is the financial institution with the longest tradition in Romania. Founded in 1864, it currently operates the most extensive national network, with over 1,000 branches and territorial units and with assets of over 53.3 billion RON at the end of H1 2022.