Monday, November 2, 2009

Romania's BRD 9-mths net lags on provisions

BUCHAREST, Nov 2 (Reuters) - Romania's second-largest bank BRD BRDX.BX posted a 36.5 percent fall in nine-months net profit on Monday, slightly below expectations, hit by an almost trebling in its provisions for bad loans.

The bank, controlled by France's Societe Generale (SOGN.PA), reported a net profit of 660 million lei ($227 million) in January-September, compared with a 688 million lei average forecast in a Reuters poll last week.

According to Reuters calculations, the third-quarter net profit stood at 235 million lei, compared with 215 million lei in the second and 210 million lei in the first.

Net risk costs, or loan loss provisions, rose to 673 million lei from 276 million lei in the same period of last year.

"Banking business suffered from the effects of the crisis in the third quarter as well because of the lack of demand ..., especially from households, and because non-performing loans continued to rise," the bank's CEO Patrick Gelin said.

Net banking revenues rose 18 percent to 2.5 billion lei, the banks said.

Excluding one-off net earnings of about 225 million lei in the first nine months of last year, the bank's nine-months net profit fell 19 percent. ($1=2.907 Lei) (Reporting by Marius Zaharia; editing by Simon Jessop)

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