- Total assets stable at €10 billion
- Net profit doubles to €102 million compared to 2009
- Loan portfolio up 12% to €5.9 billion
- Tier I ratio up to 11.4%
- Solvency ratio up to 13.3%
Credit Europe Bank NV maintained its strong profitability in the last quarter of 2010 and posted a record profit for the full year. The bank benefited from improved market conditions and increased its trade finance volume and lending activities. The total loan book grew from €5.2 billion at the end of 2009 to €5.9 billion at the end of 2010. A net increase of 27% in fee and commission income compensated for a decline in interest margins on customer loans. Meanwhile the market recovery contributed to a sharp decrease in impairments.
In December 2010 the bank completed the acquisition of a 95% stake in Turkey-based Millennium Bank AS, a subsidiary of Banco Comercial Português SA, for a total adjusted price of €58.9 million. The new bank with approximately 300 employees will join the Dutch bank’s international network that currently consists of branches and subsidiaries in Western Europe (The Netherlands, Germany, Belgium, Malta and Switzerland), Eastern Europe (Russia, Romania and Ukraine) and the United Arab Emirates. In 2010, Credit Europe Bank also expanded its branch network and created jobs via organic growth. Although employee numbers grew from 5,242 to 6,042 and the network increased from 193 to 220 branches the bank successfully maintained its organizational efficiency and limited the increase in its operating expenses to 4%.
“Credit Europe Bank combines a strategy of further growing its retail and corporate banking franchises with sound risk management. Our 2010 financial results confirm the success of our business model. What is more, our historic reliance on ‘core’ capital and our strong liquidity levels mean we are well positioned for the new Basel III requirements,” says Murat Basbay, CEO of Credit Europe Bank.
Developments in the business lines:
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- Credit Europe Bank maintained its strong position in the credit card businesses in Russia and Romania. In Russia, the bank further strengthened its position via co-branded card programs with IKEA, Metro, Mega and Auchan. In Romania, the bank is market leader with its CardAvantaj credit card.
- In Russia, Credit Europe Bank obtained a 5-year $100 million equivalent credit line from the European Bank for Reconstruction and Development for the purpose of financing regional SMEs through its branch network across Russia.
- In Russia, the bank entered new cooperation agreements with five car manufacturers and ended the year ranked 6th in car loans. In Ukraine the bank intensified sales of car loans and reached a 5% market share at the end of the year.
- In Belgium, Credit Europe Bank signed an exclusive cooperation agreement with online portal Auxifina in order to increase retail loan sales.
As a result of improved market conditions and intensive marketing efforts, Credit Europe Bank increased its trade and commodity finance volume by 27% to €6.2 billion. The bank maintained its focus on metals & minerals, energy & petrochemicals and agro-commodities.