• Total revenues grew by 18% YoY and operating income up by 27% despite merger related efforts
• Net profit up by 30.3% YoY as compared to H1 2006 combined profit of merged banks due to effective cost management and proving bank’s ability to create value
UniCredit Tiriac Bank reported good performance indicators, despite merger related efforts, as reflected by the H1 2007 operational results released today by the Bank.
At the end of H1 2007, the Bank’s total revenues went up by 18%YoY reaching 419 mln RON and operating income grew by 27% reaching 220 mln RON. The value of total assets was stable, amounting to 11.303 bn RON, with a slight decrease by 4.2%YoY as compared to H1 2006 mainly due to RON appreciation.
UniCredit Tiriac Bank registered 152.3 mln RON net profit, 30% more if compared to combined H1 2006 net profit of former HVB Tiriac Bank and UniCredit Romania. The Bank’s gross profit was 185 mln RON, increasing by 35.8% YoY.
The Return-on-Equity after tax was 23.4%, the cost/income ratio was 47.5%, while the income per employee indicator reached 344,000 RON, 18.1% more Yoy. At the end of June 2007, UniCredit Tiriac Bank had 593,475 clients, 9.7% decrease Yoy mainly due to the closure of dormant accounts.
„This is a good start for UniCredit Tiriac Bank reflecting the achievement of our main objectives”, said Rasvan Radu, Executive President UniCredit Tiriac Bank. Top priorities throughout 2007 will remain the strong client orientation and the enhancement of service quality, a good profitability level and create the ground for the consistent organic growth in the following period”, added Rasvan Radu.
At the end of June 2007, total deposits reached 5.2 bn RON, 7.9% YoY growth. The Bank’s gross loans portfolio was 6.3 bn RON, up 1.5% YoY.
UniCredit Tiriac Bank consolidated its leading position in the real estate financing in July 2007 by signing joint-venture agreement with Pirelli RE, one of the biggest companies in European real estate field. The retail and corporate clients will hence benefit of a fully integrated real estate platform comprising a wide range of financial solutions combined with a full portfolio of high quality real estate products.
The Bank has ambitious plans of organic growth. It has implemented a divisionalisation network strategy to allow focus on each customer segment and will rapidly expand to cover the entire country and consolidate its presence in key cities, in order to serve the areas with high retail potential.
* Figures reported in International Accounting Reporting Standards (IFRS).
