Erste: BCR Sold EUR84.6M Retail NPLs In Q1

04.28.2011 By Florentina Dragu

Romanian leading bank group Banca Comerciala Romana (BCR) has sold non-performing retail loans worth EUR84.6 million in the first quarter, majority lender Erste Group Bank AG (EBS.RO) said Thursday.

Romanian leading bank group Banca Comerciala Romana (BCR) has sold non-performing retail loans worth EUR84.6 million in the first quarter, majority lender Erste Group Bank AG (EBS.RO) said Thursday.

"We've sold around EUR150 million worth of NPLs in the first quarter, of which more than half represent non-guaranteed loans in Romania," said Bernhard Spalt, chief risk officer at Erste.

In its quarterly financial report released Thursday, Erste said Romanian non-performing loans amount to 18% of the group's total NPLs, the highest rate in Central and Eastern Europe.

In 2006, Erste bought a 61.88% stake in BCR for EUR3.75 billion from the state, the European Bank for Reconstruction and Development and International Finance Corporation. The Austrian group subsequently raised its stake to 69.3%, by taking over shares from BCR employees.

BCR group includes BCR bank, BCR Banca pentru Locuinte, BCR Administrare Fond de Pensii, BCR Leasing, BCR Asset Management, BCR Securities, Anglo Romanian Bank Limited and BCR Chisinau.

BCR reported net profit of 76.1 million lei (EUR18.6 million) in the first quarter, down nearly 69% on the year.