EximBank’s profits in Q1 2015 – five times higher than in Q1 2014

Bucharest, May 25, 2015 – EximBank continues its aggressive strategy of growth registered during the last two years and registers a net profit of almost 35 Million Lei in Q1 2015, five times higher than the one registered during the similar period of 2014.

”EximBank has a very good start of the year, and the fact that we are registering a net profit 28 Million Lei higher than in the first quarter of 2014 proves the principles we have applied in our strategic thinking are correct. We consider this a remarkable achievement especially having in mind our increased level of support for the real economy in difficult times when the corporate financing market is dominated by adverse conditions such as low levels of demand and intense competition on offering side. During the first three months of the year the volume of the new exposure borne by the bank both under the State name and account and on own name and account has reached almost 275 Million Lei out of which 80% have been directed towards financing the companies the rest representing letters of banking guarantees or multi- levels products. At the same time, the net credits portfolio increased with 6% as compared to the end of last year”, said Traian Halalai, President of EximBank.

The total exposures derived from financing, guarantees and insurance activities laid out by EximBank amounted at the end of Q1 2015 at 4.74 Billion Lei, main beneficiaries being companies involved in priority economic sectors such as energy production and distribution, metallurgy and extractive industries.

On March the 31st 2015, banking assets reached the level of 4.1 Billion lei, 5% higher than the level registered at the end of last year with an addition of 2.3 Billion Lei representing the exposure managed by EximBank under the Romanian State name and account.

During the first quarter of 2015, the net banking revenue of EximBank has increased with 45% as compared to the similar period in 2014, up to 59.8 Million Lei, the trend being supported by the increase of net revenues from interests and the positive evolution of the revenues derived from transactions with State titles. At the same time, operational expenses have reached 23.8 Million Lei, higher by 8% than in Q1 2014 following the expansion of the clients’ and products portfolio as well as the network enlarging.

These results conduced to obtaining an operational profit of 35.9 Million Lei, 87% higher than the one registered in the same period of 2014.

During the above mentioned period, the costs’ optimization process has prudentially but constantly continued so much so that the share of operational costs in the net banking revenue has decreased from 55% in 2012, to 43% in 2014 reaching 40% during the first three months of this year.

Return on equity for own capitals reached the level of 12.4% as compared to 4.4% in 2014 and the return on assets is 3.6% as compared to 1.2% in 2014. The costs/ revenues ratio is 39.7% 24 percentage points lower as compared to the same period of 2014.

At the end of Q1 2015, the bank stands far beyond the limits imposed by Basel III both in terms of the rate of capital adequacy (65% versus 8% – regulatory level) as well as in terms of liquidity requests (December 2014: the liquidity coverage ratio 340%, net stable funding ratio 140%).

EximBank is a specialized institution whose threefold product portfolio focused on financing, guarantee and insurance, enables it to grant assistance to current activities and development of exporters, SME-s and companies involved in projects pertaining to key economic sectors, particularly those contributing to the absorption of EU funds.

The bank registered in 2014 net profits of 46.6 Million Lei (almost 10.5 Million Euro) and has increased its total exposure towards the real economy at 4.7 Billion Lei, as compared to 4.5 Billion Lei in 2013. EximBank has registered in 2014 a non performant loans level of 3.9% much lower than the banking system average of 13.9%.

Details on EximBank products: www.eximbank.ro or informatii@eximbank.ro