Net profit of 40 Million Lei for EximBank in the first semester

Bucharest, August 24, 2015 – EximBank, a specialized bank, active exclusively on corporate segment, has registered a net profit of 40 Million Lei at the end of the first semester of the current year, 26% higher than the one registered at the same time last year, in the context of expanding the products portfolio and the territorial coverage.

”The positive trend that we notice at half this year is a direct outcome of the up-grading process implemented by EximBank, focused on increasing the flexibilityand adapting its offer of products and services to the companies’ demands. Thus, an optimization of the business model so that it could become sustainable, generating high returns and controlling risks was necessary, having in view the continuous descending trend of the reference rates on banking market that have had a high financial impact. We will continue to offer to our clients the most suitable financial solutions, following the same strong and prudential course so that we are optimistic regarding the bank’s evolution this year.”, said Traian Halalai, Executive President of EximBank.

Bank’s assets at half year have increased with 174 Million Lei, 4% more as compared to the level registered at the end of last year, with an ascending trend of the granted financing.

The new exposures granted during the first six months of this year by EximBank – both under own name and account and State’s – amounted at more than600 Million Lei, 5% more than the value registered the same time last year.

Following the efforts of improving the financing portfolio, the bank reports a consistent decrease of non performants credits up to 3.3%, as compared to 8.9% in June 2014 and significantly lower as compared to the average of the banking system – 13% at mid year.

”As far as the procedures for expanding the mandate of EximBank by taking over the specific functions of a development bank is concerned, the process of relevant legal framework revision and up-dating is almost finalized. We are confident that the interministerial committee – coordinated by the Ministry of Finance – is fully capable of finalizing the legal proceedings in the shortest time possible so that this business area will become operational by the end of the year. By this mandate expansion, EximBank will be diversifying and intensifying its activity under the State name and account. We have in mind a development bank as a specialized institution established by the Government in order to contribute to the economic development by financing the priority domains, including infrastructure projects, supporting Romanian exports and increasing of the absorption rate of European funds.”, added Traian Halalai.

The authorities have decided during the first part of this year that the future development bank of Romania will be established on EximBank’s structures, its activity focusing on financing the economic development and increasing the macroeconomic policies efficiency.

EximBank is a specialized institution actively involved in supporting and promoting the Romanian business environment, boosting local companies’ projects. Its specific financial instruments – financing, guarantees and insurance – may be accessed by any type of company, either SME or big company, involved in international transactions or present solely on internal markets.

The financing products portfolio of EximBank consists in credits for current activity, exports or investments; the bank completed its offer for financing solutions by developing factoring and cash management services as well as with a wide range of treasury products. During the first half of this year, the bank has reduced some payments fees and has expanded the schedule for banking operations thus enabling the costs reduction for banking operations and the speeding up of clearings.

The guarantees in EximBank’s portfolio are issued under the Romanian State name and account, are sovereign, reduce the risks associated with the crediting activity and facilitate the companies’ access to financing. The bank has launched this year a new product – the State counter guarantee – aiming at facilitating the companies participation in investments projects in priority economic fields.

In terms of risks mitigation, EximBank is offering to companies the option of substantially reducing the commercial and political risks associated with commercial international transactions. The insurance portfolio has been expanded this year by introducing the Insurance for export guarantees – an instrument under the last resort category, that is not being offered on the private insurance market for exporters and that falls under the official initiatives for supporting exports.

The bank is operating a network of 20 units; additional details on bank’s products: www.eximbank.roor