CEC reports good results in H1

25. Juli 2006, 00:00

The National Savings Bank (CEC) obtained in the first six months of the year, a net profit worth RON 17.6 million (EUR...

The National Savings Bank (CEC) obtained in the first six months of the year, a net profit worth RON 17.6 million (EUR 4.88 million), while the banks assets exceeded RON 6 billion, 15.4 per cent more than the level reported at the end of June 2005, Nine OClock reported. Last year, CEC had losses of almost RON 5,4 million (EUR 1,5 million). The credits assigned to non-banking clients were 2.5 times higher than the level registered in the similar interval of last year and totalled RON 2.6 billion (over EUR 700 million). CEC resources attracted from clients reached RON 5.3 billion, 19 per cent more than in 2005 H1. The profitability of the assets is only 0.58 per cent, while the profitability rate of the capitals is 5.81 per cent. CEC is crossing the last but one stage of the privatisation process, by which the state is selling a package of 69 per cent of the banks shares. The Austrian consortium Raiffeisen International, the Hungarian bank OTP and the National Bank of Greece have submitted at the beginning of last week, engaging offers for taking over the CEC shares put up for sale by the state. The finalists will be decided on Tuesday, July 25, after opening the financial offers. In the last stage, of the improved financial offers, the investors will have the possibility to submit offers to maximise the sale price. The first two offers automatically qualify for the final stage, but there could also be three competitors, if the investor on the third place has a 10 per cent or lower scoring of the first offer. The state is selling 69.9 per cent of the shares, a package that also includes the 9.9 per cent share which, according to the law, belongs to Proprietatea Fund, whose value will be transferred to the Fund after the sale. A 5 per cent package will be sold to CEC employees and pensioners whose last job was with the bank. The shares left in the states portfolio after the finalisation of the privatisation will be sold, partially or entirely, through public offer on the local and/or foreign capital market, including to current shareholders.
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