CEC Bank has ended 2017 with gross profit of Lei 222.7M, experiencing in this way the best financial performance of the last ten years, as a result of successful fulfilling of the strategies adopted by and constant efforts of Bank’s team.
The net amount of the balance sheet result at the end of 2017 was of Lei 31 651.2 M, by 12% bigger than in 2016. The result was based on the increase of the balance of new deposits attracted from the bank and non-bank customers, which supported the positive trend of the lending activity related assets. This led to the increase of the market share, according to the asset volumes, from 7.16% at the end of 2016, to 7.42% at the end of 2017, the Bank maintaining in this manner the position in the 7-banks top for the banks within the Romanian banking system.
In 2017, the balance of the loan portfolio for legal entity customers, increased by about 9% compared to 2016, while at banking system level, such indicator had an increase of only 3%. The Bank also increased and balance of loan portfolio for natural persons, which had in 2017 an increase by 12% compared to the previous year, while at banking system level, such indicator had an increase of about 8%.
The actual total loan balance increase was of de 12%, but such increase was diminished by the write-off operations for the gross loan book values in 2017, reaching at 10%, compared to 6% recorded at banking system level.
For the amount of new loans granted in 2017, it increased by 16% compared to 2016, while such increase at whole banking system was of only 7%. Significant increases were experienced on both customer segments, namely 17% CEC Bank increase vs. 8% banking system increase related to legal entities, respectively 14% CEC Bank increase vs. 7% banking system increase related to natural persons.
A more relevant view on the balance of loans and newly granted loan trend for CEC Bank vs. the whole banking system is illustrated below:
The lending activity experienced an increase rhythm much more intense than the balance sheet balances as the loans granted to customers operating in agriculture are granted and fully repaid during the year and some loans approved in 2017 and not drawn until the end of the year are not reflected in the balance sheet balance.
Continuing the policy of supporting the absorption of European Funds, the Bank funded until the end of 2017 a number of 42 500 projects eligible for accessing the European Funds, whose aggregate grant value amounted to more than Lei 12 912 M.
The balance of the deposits attracted from non-banking customers has increased in 2017 by 4% compared to the previous year, where the Bank holds enough liquidity and applied a policy of mitigating the attraction of such resources. This result reveals once again that the key values of CEC Bank - trust, honesty, stability – continued to be recognized and appreciated on the banking market.
During 2017, the Bank experienced a significant improvement of the quality of assets. Hence, on December 31st, 2017, the exposure to bad loan and advance rate decreased by 2.84% compared to the level recorded on December 31st, 2016. The bad loan and advance rate for loans and advances granted to natural person customers, of 2.91% on December 31st, 2017 (below the average of 5.75% recorded in the banking system) reflects a higher quality of the portfolio of loans granted to natural persons, being decreasingly by 1.52% compared to the level recorded on December 31st, 2016. The positive trend in the portfolio loan quality continues also in this year.
The total own fund rate of 15.26% recorded on December 31st, 2017, reflects an efficient capital use. From quality point of view, the own funds of the Bank were fully constituted from 1st level basic own funds.
CEC Bank provides a full range of financial products and services, continuing to invest in 2017, in modern products and services, digitally facilitated, in order to provide customers with accessibility and convenience. In 2017, the Bank experienced substantial increases in the digital and electronic operations, by 12% more than in 2016. The Bank customers benefit of a national network of 1 217 ATMs and 6 040 POS, as well as of full Internet Banking, Mobile Banking and Phone Banking services. CEC Bank is the bank within top 10 having the most extended territorial network, with 1 022 units, out of which 480 are located in the rural environment, continuing to keep such position of leader on such market segment, even after the crisis years.
"According to the mission assumed, CEC Bank continues to mainly support the SMEs, the agriculture and the local public administrations. A significant care is granted to co-financing of the projects funded from European Funds. In 2018 we aim to increase our business, especially in the lending field, with visible impact over the increase of effectiveness and prudential indicator improvement. On April 30th, 2018, the Bank obtained a gross profit of Lei 122.6M, significantly the highest compared to the targets assumed for the period January – April 2018” has declared Mr. Radu Gratian Ghetea, CEC Bank President and CEO.