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PATRIA BANK S.A. - PBK

Q1 2019 Financial results

Release Date: 5/15/2019 8:01:42 PM

IRIS Code: FB9CF

 

Announcement regarding the financial results of Patria Bank SA for Q1 2019 

 

Patria Bank SA result for the first three months of 2019 is 88% better than the same period of 2018 (from a loss of RON 19 million in Q1 2018 to a loss of RON 2 million in Q1 2019). These results were backed by a positive evolution of the net banking income by 28% (based on an improvement of the net interest income of 29% and of the net commissions income of 21%) amid continuing actions aimed at consolidating an optimal balance sheet structure with an improvement of the Loan to Deposit Ratio (from 56.61% as at December 31, 2018 to 60.72% as at March 31, 2019) and an increase of the share of the net loans in total assets (from 45% as at December 31, 2018 to 47% as at March 31, 2019). Also, the operating cost base has decreased by 5.6% (if the impact of the increase in the contribution to FGDB of RON 3 million is excluded).

 
The Bank has started the restructuring program scheduled for 2019 with the aim of optimizing the cost base in direct correlation with providing a viable business model and an internal structure appropriate to it.

On commercial level, during Q1 2019 the lending activity generated new loans amounting to RON 180 million, with a higher dynamics recorded in the area of legal entities. Even if the sales budget was achieved in proportion of only 88%, this volume of new loans provided an increase of the gross balance of commercial loans of approx. RON 50 million in the area of performing loans, in particular by improving the use of financing lines.

In the corporate loans segment, the new loans production had a usual dynamics in all business sub-segments, both in the Micro and Agro area (approx. RON 70 million) and in the SME & Small Corporate area (approx. RON 95 million).

The increase in the non-default loans portfolio is of approx. RON 50 million (+4%) and for the loans in default a decrease was registered mainly due from the settlement of the transactions of selling non-performing loan portfolios for which binding offers were concluded in December 2018 (please see details provided in the published IFRS Financial Statements).

On the operational level, for the next period, the Bank intends to continue its strategy of streamlining processes and significantly reducing operational costs by implementing several strategic projects (such as: implementing a new Internet Banking and Mobile Banking solution dedicated to both individual and corporate clients, finalization of the implementation of a transactional platform according to PSD II standards etc.)

As a result of the restructuring program, which the Bank provided for in the budget for 2019 (remodeling of the territorial network from 81 units to 46 units with a corresponding decrease of the costs base), a resizing of the balance sheet is noticeable; thus the total assets on March 31, 2019 registered a decrease of approx. 10% as compared to March 31, 2018 and a decrease of 4.6% as compared to December 31,  2018 corresponding to the reduction of current accounts and deposits due to customers).

The credit portfolio (net worth) registered an increase of 13% compared with March 2018 and a marginal increase of 0.8 % compared to December 31, 2018.

The Total Capital Ratio (individual level) as at March 31, 2019 is of 15.20%, exceeding the legal requirements.

 

  

 

The integral version of the Report on the quarterly financial results of Patria Bank S.A together with the Statement of Financial Position and Statement of Financial Performance as at 31.03.2019, shall be accessible on the bank's website at https://en.patriabank.ro/about-patria-bank/investors/reports-and-results/financial-reports or on the website of the Bucharest Stock Exchange at the link below starting with 15.05.2019.

 

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About Patria Bank and Patria Bank Group

 

Patria Bank is a Romanian bank, listed on the Bucharest Stock Exchange, with a national presence, over 180,000 clients and RON 3.5 billion in assets, being dedicated to increasing banking degree in Romania and supporting local entrepreneurs.

The Patria Bank Group is owned by the Emerging Europe Accession Fund (EEAF), a private equity fund whose main investors are the EBRD (European Bank for Reconstruction and Development), the EIF (European Investment Fund, part of the European Banking Group Investments), DEG (Development Bank, part of the KFW Banking Group) and BSTDB (Black Sea Development Bank). Patria Bank Group includes Patria Bank, Patria Credit IFN and SAI Patria Asset Management.

 



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