BCR group posts 602 million lei in net profit in Q1

   Banca Comerciala Romana Group posted 602 million lei in net profit in the first quarter of the year, down by almost 19% compared with the same period last year, when it reported a net profit of 742 million lei, according to a press release from the bank on Thursday.The operating result reached 1.044 billion lei (205 million euro) in the first quarter of 2026, slightly below the level recorded in the first quarter of last year. This development reflects an increase in operating expenses at a faster pace than operating revenues, driven by ongoing strategic investments and inflationary pressures.Net interest income fell by 1.4% compared with the first quarter of 2025, to 1.174 billion lei (230 million euro) in the first quarter of this year, affected by pressure on margins in a highly competitive market environment.Net fee and commission income rose by 6.8% year on year, to 305 million lei (60 million euro) in the first quarter of 2026, supported by higher transactional activity, lending growth, and increased commissions from insurance and investment products. This performance confirms the continued relevance of diversified revenue sources.Net trading result and income from financial instruments measured at fair value increased by 4.1% year on year, reaching 125 million lei (25 million euro) in the first quarter of 2026.As a result, operating income rose slightly by 0.3% year on year, to 1.609 billion lei (316 million euro) in the first quarter of 2026, driven by higher fee income and trading activity.General administrative expenses increased by 4.3% compared with the first quarter of 2025, reaching 564 million lei (111 million euro) in the first quarter of 2026, reflecting the impact of inflation and the VAT increase, as well as continued investment in strategic initiatives, partially offset by ongoing optimisation measures. As a result, the cost-to-income ratio remained at a solid level of 35.1% in Q1 2026, highlighting a continued focus on operational efficiency, the press release states.Net impairment losses on financial instruments amounted to 182 million lei (36 million euro) in the first quarter of 2026. Allocations were distributed relatively evenly between the Retail and Corporate segments, reflecting portfolio dynamics, including non-performing loan (NPL) formation in the current uncertain macroeconomic environment.The non-performing loan (NPL) ratio at Banca Comerciala Romana Group level, calculated according to the Erste Group methodology, rose to 3% in March 2026. This reflects normal NPL formation, combined with a slight reduction in the loan portfolio compared with December 2025. The NPL coverage ratio stood at 129% in March 2026.The Tier 1+2 capital ratio of the Banca Comerciala Romana Group stood at 24.9% in March 2025 (preliminary level, own funds include profit), above the requirements of the National Bank of Romania.Net loans and advances to customers fell slightly by 2.3% compared with December 31, 2025, reaching 71.268 billion lei (13.977 billion euro) as of March 31, 2026. While both the retail and corporate segments recorded significant growth, this was offset by the maturity of a large short-term loan previously included in the Other segments category.Customer deposits increased slightly by 1.8% compared with December 31, 2025, reaching 94.802 billion lei (18.592 billion euro) as of 31 March 2026, driven by growth in corporate deposits.'We are at a moment of economic inflection, and the first three months of 2026 have carried the cumulative weight of escalating geopolitical tensions, rising inflationary pressures, and disruptions in global oil and gas distribution. The direct impact is visible in higher risk costs, as well as in declining investment appetite and consumption, which are also influenced by local fiscal and political volatility,' said Sergiu Manea, CEO of Banca Comerciala Romana, in the press release.Banca Comerciala Romana offers a full range of financial products and services through a network of 20 business centres and 18 mobile offices dedicated to companies, and 290 retail units located in most cities across the country with more than 10,000 inhabitants, of which 73% are cashless branches where cash transactions are carried out only via machines.