Trading update Q3 2011: Net profit Credit Europe Bank at €73 million

16.12.2011

Credit Europe Bank’s customer loan portfolio increased to €6.4 billion per end of September 2011, up 10% compared to the end of 2010. Thanks to the higher net interest income and decreasing impairments, the bank’s net operating income increased 17% year-on-year, from €267 million in the first nine months of 2010 to €313 million in the same period of 2011. Net profit for the same period decreased slightly to €73 million, mainly due to continuous investments in the bank’s distribution network leading to an increase of total operating expenses from €170 million to €217 million.

Credit Europe Bank’s total capital ratio or solvency ratio ended the third quarter at 12.7% while its Core Tier 1 ratio reached to 9.5%. The bank confirms that it has no sovereign risk exposure to Southern European countries.

We are satisfied with our results over the first nine months of 2011 given the economic slowdown in the Eurozone. During this period, we managed to increase our loan portfolio and strictly controlled all our risks in line with our well-defined risk appetite and strategy. We also ensured to keep the strong capital and liquidity buffers of the bank. Our strategy is to focus on growth in trade finance and retail banking operations. This year we expanded our network by opening retail branches, especially in Turkey and Russia, and by establishing new partnerships with major online retail loan portals in Germany,” says Murat Basbay, CEO of Credit Europe Bank NV.

Operational highlights

• The third quarter of 2011 was marked by a deteriorating business sentiment and retreating commodity prices in general. In the face of these developments our trade finance volume performed relatively strong during the year so far with a growth of 34% to €7.57 billion in the first nine months of 2011 compared to the same period of 2010.
• The Western European savings market is marked by increasing deposit rates. In this challenging environment the bank was able to maintain its retail deposit base at the desired level thanks to its customer service focus, its improved contact center and its online banking technology.
• In Romanian retail banking, the bank kept its market leading position with its CardAvantaj credit card. The bank’s focus on online banking led to a 50% increase of our customers’ transactions via the internet since the beginning of the year.
• In Russia, where the bank operates co-branded card programs with international retailers such as IKEA, Metro, Mega and Auchan, the credit card turnover increased 67% since the beginning of the year.
• The bank’s Turkish subsidiary Fibabanka opened its third new branch so far this year in October, increasing the total amount of branches in the country to 21.
• In Ukraine, the bank opened a retail branch in Kharkov, the 2nd largest city in the country, after opening six new regional offices earlier this year. The bank is now represented in the regions with the highest economic activity in the country.

Credit Europe Bank: A reliable bank that works for you

More than three million customers around the world entrust their financial affairs to Credit Europe Bank.

The bank offers corporate customers a variety of products, focusing on international trade and commodity finance. Represented in key trading hubs such as The Netherlands, Malta, Switzerland and the United Arab Emirates as well as in raw material exporting and importing countries including Russia, Turkey and Ukraine, the bank is well positioned to finance its customers’ transaction flows across the globe. The bank services retail and SME customers in nine European countries including Germany, Belgium, Malta, The Netherlands, Romania, Russia, Switzerland, Turkey and Ukraine by offering simple and transparent products.

Credit Europe Bank N.V. is headquartered in The Netherlands and operates more than 225 branches, 475 ATM’s and 14,500 sales points with more than 6,000 employees in 11 countries.

For more information, please visit www.crediteuropebank.com

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