BCR records net profit of 469 million Euro, up 33 percent in 2023

BCR achieved a net profit of RON 2,321 million (EUR 469 million) in 2023, up by 33 percent against RON 1,746 million (EUR 354 million) in 2022, driven by improved operating result underpinned by advance in customer business.

“For BCR, prosperity is also built through financial education, beyond everything that means real collaboration with all customers and access to a complete banking experience. Today, we are celebrating 1 million Romanians who have been open to hold honest money discussions with us. 650,000 people have put their trust and stepped into the basics of financial education with Money School, while over 400,000 people have benefited from a personalised financial plan in the last year and a half through BCR’s financial coaching service.

This data helps primarily to building value over time through financial education and smart financial choices. It’s the foundation we have for developing a society where people are more confident and able to achieve their financial goals. Further, our role is to deploy resources to support Romania as an economic force in the region by strengthening the local business ecosystem and developing human potential. Because absolutely all Romanians must have a fair chance to succeed and be valued in Romania, because we all need to be part of building country confidence and resilience,” said Sergiu Manea, CEO BCR.

Operating result improved by 17.2 percent to RON 3,206 million (EUR 648 million) in 2023 from RON 2,735 million (EUR 555 million) in 2022, on the back of higher operating income, partly offset by increased operating expenses.

Net interest income increased by 24.0 percent to RON 3,656 million (EUR 739 million) in 2023, from RON 2,949 million (EUR 598 million) in 2022, driven by higher business volumes and market rates.

Net fee and commission income improved by 7.2 percent to RON 1,013 million (EUR 205 million) in 2023, from RON 944 million (EUR 191 million) in 2022, driven by increased fee income from corporate lending as well as higher securities and insurance fees.

Net trading result dropped by 12.5 percent to RON 552 million (EUR 112 million) in 2023, from RON 630 million (EUR 128 million) in 2022, on lower trading activity.

Operating income increased by 14.3 percent to RON 5,273 million (EUR 1,066 million) in 2023, from RON 4,615 million (EUR 936 million) in 2022, driven by higher net interest income as well as higher net fee and commission income.

General administrative expenses reached RON 2,067 million (EUR 418 million) in 2023, up by 9.9 percent in comparison to RON 1,880 million (EUR 381 million) in 2022, on the back of higher personnel expenses generated by the inflationary environment.

As such, cost-income ratio improved to 39.2 percent in 2023, versus 40.7 percent in 2022.

Impairment result from financial instruments reflected a provision allocation of RON 46 million (EUR 9 million) in 2023, significantly lower versus the allocation of RON 394 million (EUR 80 million) in 2022. The current result mainly consisted of collective provisions booked for the performing portfolio, while the provision releases driven by further collection activities in both retail and corporate segments fully offset the allocations for regular new defaults.

NPL ratio stood at 2.9 percent as of December 2023, stable versus 2.8 percent recorded as of December 2022. This evolution is reflecting the recoveries and healings in both retail and corporate segments which counterbalanced the regular NPL formation. At the same time, the NPL provisioning coverage was 168.7 percent as of December 2023.

Net loans and advances to customers increased by 6.2 percent to RON 58,743 million (EUR 11,806 million) as of 31 December 2023 from RON 55,329 (EUR 11,179 million) as of 31 December 2022, supported by both retail and corporate segments.

Deposits from customers increased by 3.8 percent to RON 78,482 million (EUR 15,773 million) as of 31 December 2023 from RON 75,589 million (EUR 15,272 million) as of 31 December 2022, supported by the increase in both retail and corporate deposits.