BCR, BRD, Raiffeisen generate 80% of H1 2008 banking profit

The first three banks in Romania in terms of assets – Banca Comerciala Romana (BCR), BRD SocGen and Raiffeisen Bank – generated 80% of the profit in the Romanian banking system in the first half of 2008, or 421 million euros. Data with the National Bank of Romania (BNR) indicate that the aggregate net profit in the Romanian banking system in the first six months of 2008 stood at 522 million euros.
The classification of the 3 banks in terms of profits looks identical to the classification against assets. And yet, while BCR reported the largest accounted net profits, of 206.6 million euros, recorded by all the member companies of the group, Raiffeisen, with a net gain of 74 million euros reported against international accountancy standards, posted the best return on equity rates, which advanced to 33.4%, compared with 30.4%, as recorded by BCR.
Both BCR and Raiffeisen have over the past years focused on improving profitability and efficiency, amidst BCR undergoing reorganisation to adjust itself to the business model of its Austrian owner Erste Bank, and Raiffeisen being forced to speed up the expansion of its local network to boost business. The two banks’ slow gains in assets, with annual growth rates of small percentages, have cost both parts of their market shares.
On the other hand, BRD, which used to fare well in terms of efficiency, recorded a slight deterioration. In H1, 2007, its return-on-equity rate was 38%, which fell to 35.6% in December 2007, and further down to 32.4% in June 2008. BRD reported a profit from its banking business of 140.3 million euros computed against local accountancy standards. The ratio of general expenses to the net banking revenues rose to 45.1% in June 2008, from 43.5 percent in H1, 2007.
BCR owned assets worth 16.6 billion euros as of June 2008, with a market share of 21.6%.
BRD’s share was 15.4% for assets worth 11.85 billion euros. Raiffeisen controls 5.9% of the Romanian banking assets, with assets worth 4.57 billion euros. The largest 3 banks are sharing between them 43% of the system’s assets, something more than 33 billion euros.As regards the staff of the three banks, BCR employees were the most productive, each of them contributing 21,606 euros to the profit of the bank in the first half of 2008, as they were the largest banking staff – 9,562, working in a network of 588 outlets.
Although BRD is operating the largest banking network, of more than 800 outlets, it employs only 7,841 staff. And yet, the average profit per employee was 17,893 euros. In these terms, Raiffeisen is again the third, with 6,417 employees and 11,530 euros contributed by each to the total net profit.With a smaller network than BRD’s and comparable to Raiffeisen’s, BCR fared the best in terms of assets generated by its outlets, an indicator that stood at 28 million euros.
The bank’s total assets stood at 16.6 billion euros in June. Raiffeisen’s outlets generated 9 million euros each, on the average for the bank’s total assets of 4.57 billion euros. At BRD, the average value of assets generated by outlets stood at 14 million euros, for an estimated network size of 800-850 outlets.
BRD’s total assets stood at 11.8 billion euros in June 2008.
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