3ea0a4b8-051c-4583-b43f-436a89b5ef31.pdf

PRESS RELEASE

THIRD QUARTER RESULTS, 2015

CAPITAL RESTRICTIONS CONTINUE TO IMPACT NEGATIVELY THE BANK'S RESULTS


Highligths


  • Reported Net Loss during the first 9 months of 2015 at 26.5M RON compared with a loss of 21.7M RON during the same period in 2014
  • Solvability - capital ratio was 8.6%, down from 10.8% at 31 December 2014 as a result of the first 9 months losses and of the increase in RAS provisions
  • Net Income of 81.3M RON over the first 9 months down 19%, compared with 100.9M RON during the first 9 months in 2014, primarily reflecting lower revenues from financial assets. The net income from commercial activities in 2015 idicate a 15% growth in performance for the same period in 2014 ( 62.1MRON during the first 9 months in 2015 as compared to 54.1 M RON in the first 9 months in 2014) as a result of the reduction in provisions volume as registered during the first 9 months in 2015, compared with the same period of last year.
  • Operating Expenses of 107.7M RON YTD 2015 decreased by 10% (12.3M RON) compared with the first 9 months of 2014, reflecting constant efficiency gains
  • Net loans to customers (net value) decreased by 17% to 863M RON compared with year-end 2014 mainly due to loans repayments and to the limited level of lending caused by the capital shortage
  • Deposits from customers - decreasing by 4% (115M RON) as compared to those of 31 December 2014. Loans-to-deposit ratio was 40% as compared with 52% at 31 December 2014, reflecting the liquidity excess available to support future growth.


CEO, Johan Gabriëls, commented


The capital shortage combined with a planned adjustment of the banks OREO's during 2H15 did not allow the credit portfolio to grow or access to the use of the liquidity excess. As a consequence, the efforts regarding various initiatives to increase the bank's capital intensified and the progress made proved to be in line with expectations.


On June 27th, the bank announced that exclusive discussions have been initiated with J.C. Flowers regarding a potential 110M RON injection to capital.


Early September, a Sales Purchase Agreement was signed with a group of shareholders holding 57 % of the bank shares. During the October 9thEGSM, the shareholders of BCC reinforced their support towards J.C. Flowers' participation as a potential new major shareholder. In the meantime, the bank has successfully finalized the action to decrease its social capital as approved by GSM while taking the necessary steps to exercise its preferential rights with regards to the capital increase.



During this difficult period, the bank's employees made all efforts to protect and preserve the bank's value core commercial revenues and continued seeking new initiatives to generate savings and efficiencies as well as to create premises for a healthy growth over the next period.


The bank's management team decided to postpone any meeting with investors until completion of the capital increase and until a new major investor is brought in.

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