Piraeus Bank Romania Stays In Black, But Profit Falls 40% In First Quarter

05.30.2011 ZF English

Piraeus Bank, local subsidiary of Greek financial group Piraeus, ended the first quarter of this year with a gross profit of just over EUR6 million, 40% lower than in the similar period of 2010.

"The need for provisions was covered and remained steady in the first quarter of 2011 compared with the first quarter of 2010. The bank's pre-tax profit reached EUR6.16 million, along the lines budgeted," says Catalin Parvu, chief executive officer of Piraeus Bank.

The results are calculated according to local accounting standards. Piraeus had reported a EUR10.3 million gross profit in the first quarter of 2010.

The solvency ratio, which measures the company's ability to cover its debt obligations - remains at 17%, above the minimum level required by the country's central bank BNR, of 10%.

"As a result of the lower number of eligible customers, and to the natural repayment process, the overall volume of loans granted fell by 6% (March 2011 against March 2010 i.e.)," Parvu says.

Piraeus managed, on the other hand, to attract more funds from customers, with the volume of deposits climbing to EUR1.32 billion, nearly 14% more than the level recorded at the end of last year. Against March 2010, the increase is of 11%. Under the circumstances, the loan-deposit ratio improved, sliding to 111%.