Millennium Bank Romania loss narrows to EUR 6.5 mln in H1 on lower provisioning

Newsroom 30/07/2012 | 14:04

The Romanian subsidiary of the Portuguese lender Millennium bcp registered a loss of EUR 6.5 million in the first semester from EUR 10.1 million in the same period of last year, driven by a reduction in impairment charges and a cost reduction policy.

The banking income fell by 22.1 percent to EUR 10.5 million, while the operating costs reduced by 19 percent to EUR 16.7 million.

The lender said its reduction of the banking income is caused by the IFRS implementation in Romania that changed the calculation of the interest income, so the two results can’t be compared.

Total banking revenues reached EUR 14.5 million on H1, if the old methodology is used, resulting in a decrease of 1 percent, due to lower FX and trading revenues.

The interest and commission income was up by 4 percent to EUR 13.1 million.

The volume of gross loans to customers gained 13.7 percent to EUR 406 million, while deposits fared better, expanding by 20.4 percent to EUR 299 million.

Millennium closed one branch and operates 65 units across Romania, while the number of employees was cut by 23 to 668.