UniCredit Tiriac Bank 1Q Net Profit Halves To RON34M

05.13.2011 By Florentina Dragu

Romania’s UniCredit Tiriac Bank on Friday said its net profit fell 47% to 34 million lei (EUR8.3 million) in the first quarter, due to negative effects of the recession and lower margins, according to the lender’s financial report.

In the first three months of 2010, UniCredit Tiriac reported net profit of RON64 million.

The figures are calculated according to IFRS. Under Romanian accounting standards, the bank posted net profit of RON52 million (roughly EUR12.7 million) in the first quarter, down 14% on the year.

Bank revenue fell 8.8% on the year to RON282 million (EUR67 million) in the first quarter, mainly due to an 18% decline in net interest revenue. Provisions rose to 6% of total loans, from 4.1% of total in the same period of 2010.

UniCredit Tiriac's solvency ratio stood at 12.8%, while risk cost was 2.1%.

The bank reported total assets of RON19 billion (EUR4.7 billion) end-March, down from RON20 million a year earlier.

Consolidated assets, including UniCredit Leasing Corporation and UniCredit Consumer Financing, were at RON22.1 billion (EUR5.4 billion), from RON23 billion in March last year.

The group's consolidated net profit halved to RON30 million in the first quarter.

UniCredit Tiriac Bank is part of Italy's banking group UniCredit. (EUR1=RON4.0997)