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Patria Bank got on profit after the first six months: net result: 2.8 million lei


Patria Bank had a net profit of 2.8 million lei in Q1 2019 against a loss of 23.3 milliion lei in the first six months of last year according to a press release of the bank.

The bank gave new loans of almost 342 millin lei with a superior dynamics for companies loans (SME loans, micro-loans and agro). The gross balance of commercial loans had a growth of 80.6 million lei against the end of 2018.

Operational costs dropped  by approximately 8% against the same period of last year ( excluding the increase in the costs due to the increase of the contribution to the Funds of Guarantee of Banking deposits)under the impact of the programme for the optimization of the network of banking branches and organizational structure, in direct correlation with the assurance of a way of business which is viable and a domestic structure corresponding to it, says the quoted press release.

The cost of the risk was lower by 78% during a similar period of 2018 as recovering actions  improved, as well as the diminution of the portfolio of non-performng loans through operations of portfolio sales ( Q4 2018 and Q1 2019).

In this context, the banking net income recorded a positive evolution with 19% (growth of net income out of interest with 24% and net income out of commissions with 20%) as the actions meant to consolidate a balance optimal structure recorded an improvement of the indicator ‘ gross loans/ deposits’ (from 57% on 31st December 2018 to 65% on 30th June 2019) and a growth of the share of net loans in total assets ( from 45% on 31st December 2018 to 51% on 30th June 2019).

‘2019 is the year to ‘ turn around’ for Patria Bank. We got into a zone of profitability in Q1 and we created the premises for going on and increasing in this new stage, relying on a very good evolution of the level of lending, due to the model of consolidated business and a careful management of costs and new initiatives with which we want to generate a positive impact on the clients, employees and investors. Concentration on the support of entrepreneurs in all areas of expertise – SME, micro-financing and Agro – improvement of the processes and interactions with end-clients, either natural persons or companies, together with competitive products in the area of retail represents basic pillars to keep and increase profitability’ stated Daniela Iliescu, general manager Patria Bank.

For the period to come, Patria Bank is going to continue the strategy of process efficiency and optimization of operational costs through the implementation of several strategic projects – a new solution of Internet Banking and Mobile Banking dedicated both to natural persons and judicial persons, the finalization of the implementation of a trading platform according to PSD II standards, the digitization of several flows and operations, etc.- as well as the development of new products and processes with a view to diversifying and simplifying interaction with clients with the bank.

The Patria Bank group is owned by the Fund for investments Emerging Europe Accession Fund (EEAF), a private equity fund whose main investors are BERD (The European Bank for Reconstruction and Development) FEI ( The European fund for Investments, part of the Group of European Bank for Investments) DEG ( The Development Bank, part of the banking group KFW BSTDB ( The bank for development of the Black Sea region).

The Patria bank group includes Patria Bank, Patria Credit IFN and SAI Patria Asset Management.