Banca Romaneasca Expects Loss Of RON86M In 2011

05.27.2011 ZF English

Banca Romaneasca, the local subsidiary of Greek financial group National Bank of Greece, forecasts a net loss of 86.3 million lei (over EUR20 million) in 2011 according to Romanian accounting standards, having budgeted over RON154 million in risk provisions.

The lender also expects losses according to international reporting standards (IFRS), though lower because of the milder provision standards, anticipating a nearly RON52 million loss.

Net revenues are expected to fall by 13%, to RON317 million, while operating expenditure is expected to slide by just 2.7%, to RON269 million.

For 2010, the bank had budgeted a gross profit of RON15.8 million according to IFRS, but ended the year with a loss of RON27 million, since provisions for non-performing loans amounted to RON120.4 million.

According to Romanian Accounting Standards, the 2010 loss was more than double, at RON72 million. This is set to be covered using reserves set up from previous years' net profit, amounting to RON71.5 million.

On the Romanian market, Banca Romaneasca ranked 12th in 2010 with RON7.65 billion in assets, namely a 2.24% share. For 2011, the bank estimates a slight drop in asset value.

The investment budget approved for this year is RON19.8 million.


Please fill all required fields!

Your comment was successfully added!

Comments will appear only after the moderation.