Increased assets and net profit for Romania's state-owned CEC Bank observed during 2024.
"Let's talk about CEC Bank, shall we?"
Last year saw some impressive growth for this Romanian state-owned bank. Their assets skyrocketed by a whopping 19%, climbing from 83.61 billion RON to a mighty 99.33 billion RON. That's around €19.8 billion, for those craving some Euro-flavor!
Profitwise, things looked even sweeter. Net profit at group level soared to a staggering 687.9 million RON, with the bank itself accounting for 668.2 million RON of this loot. Compared to the 515.8 million RON they netted in 2023, we're talkin' about some serious cheddar, here!
Now, you might be wondering, "What fueled this financial bonanza?" Well, let's dive in!
Interest Income saw a significant 30% jump, thanks to a bloated balance of loans and placements. Market interest rates were high, and interest income skyrocketed by roughly 1.149 billion RON. However, interest expenses also trended upward, increasing by about 666 million RON.
Fees and commissions got a boost too, swelling by about 11.6% or 32 million RON, mainly due to an increase in government program-related fees.
Administrative expenses took a hefty 24.3% hike, mainly due to a new turnover tax. If that tax hadn't been around, the increase would've been a more manageable 12.9%.
Despite this, the bank boosted its cost-to-income ratio, dropping to 48.53% at the end of last year, down from 50.6% at the end of 2023. And without that pesky turnover tax, the ratio at bank level would've been a snappy 44.87%.
All these growth drivers resulted in an impressive 13.35% return on equity (ROE) at group level, compared to the relatively mild 12.35% at the end of 2023. Without the turnover tax, the bank level ROE would've been a strong 15.18%.
In 2024, CEC Bank strengthened its position on the capital market, managing to snag a new whopping 1.5 billion EUR benchmark tranche under its EMTN Program. This EUR 300 million tranche was even rated BB by Fitch, right in line with the bank's IDR rating. The orders received were more than double what they initially announced, coming mostly from foreign investors.
CEC Bank also handed out over 75,000 new loans worth approximately 15.2 billion RON in 2024. About 64,000 Romanians got financing worth 3.4 billion RON for real estate investments or other personal projects. The volume of these loans grew by a whopping 70% compared to the year before.
Corporate lending also saw growth, with over 11.8 billion RON (that's 2.3 billion Euros!) in new loans, including 4 billion RON (or 803 million Euros) for new clients. And guess who went digital? You bet! The number of clients accessing loans online tripled compared to 2023.
First established in 1864, CEC Bank heads the pack as the longest-standing financial institution in Romania. It currently boasts over 1,000 branches and territorial units, ensuring they've got you covered nationwide.
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(Photo credit: press release)
- In 2024, CEC Bank aimed to solidify its standing in the finance industry, securing a new 1.5 billion EUR benchmark tranche under its EMTN Program.
- Despite the hike in administrative expenses, CEC Bank managed to improve its cost-to-income ratio in 2021, dropping to 48.53% at the end of the year.
- In the banking-and-insurance sector, CEC Bank demonstrated impressive profitability last year, reporting a 13.35% return on equity (ROE) at group level.
- In 2024, CEC Bank extended over 75,000 new loans, amounting to approximately 15.2 billion RON, showing a commitment to serving the needs of its clients in the Romanian business and personal finance market.
