Savings bank

Net profit of Romanian savings bank CEC increases by 5% in 2021

BUCHAREST, Romania, February 14 (SeeNews) – Romania’s state-owned savings bank CEC said on Monday its net profit rose to 355 million lei ($81 million/72 million euros) in 2021, from 337 .7 million lei the previous year.

In 2021, CEC Bank managed to attract a record number of 135,000 new customers, it said in a press release.

Net interest income amounted to 1.1 billion lei and remained stable compared to last year, given that in the first nine months of 2021, in the banking market, rates were at an all-time low and the upward trend in interest rates was only felt in the fourth quarter, the bank said. Net commission income increased by 11.4% per year to reach 297.5 million lei in 2021, in line with the bank’s strategy to diversify its sources of income.

The bank’s assets increased by 22.7% in 2021, exceeding 50 billion lei.

CEC Bank’s loans granted to customers increased by 17% per year in 2021 to reach 26.9 billion lei, while deposits increased by 20.8% per year to reach 41.9 billion lei.

The loan portfolio remained healthy and the non-performing loan rate stood at 5.28%, down slightly from 5.52% at the end of 2020.

In 2021, CEC Bank granted 6,700 new mortgage loans worth more than 1.7 billion lei, up 53% compared to 2020. In addition, around 850 loans worth more than 3, 3 billion lei were granted for investments, an increase of 133% compared to 2020.

“The journey continues, and in 2022 we have equally ambitious transformation plans: we will bring new products online and we will continue to develop our hybrid business model, which serves both non-digitized rural Romania as well as modern digital customers,” said CEC Bank President Bogdan Neacsu.

In December 2021, CEC Bank received a subordinated loan of 1.4 billion lei from the Ministry of Finance, as part of the obligations assumed under a business plan which served as the basis for an increase of 200 million euros ($226 million) of CEC Bank’s share capital, approved by the European Commission (EC) at the end of 2019.

(1 euro = 4.9455 lei)

CEC Bank SA is one of the largest banks in SEE, for more reference take a look at Top 100 Banks

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