Bank Leumi (TASE: LUMI) subsidiary Bank Leumi Romania SA is recovering, despite the economic crisis in Eastern Europe. The bank today published its financial report for the third quarter of 2009, reporting a net profit of 11.7 million leu in January-September, 59% more than in the corresponding period of 2008. In dollar terms, net profit rose to $3.8 million from $2.9 million.
Bank Leumi Romania's capital adequacy ratio was 26.5%, under Basel II - The New Basel Capital Accord of the Basel Committee on Banking Supervision terms. All figures are International Financial Reporting Standards (IFRS) compliant.
Bank Leumi Romania was a money-losing bank when Bank Leumi acquired it in 2006. It posted a token profit in 2007, and profits began to gradually increase.
Bank Leumi Romania's balance sheet total was 1.3 billion leu ($458 million) at the end of September, unchanged from a year earlier, and its shareholders' equity was 272 million leu ($95 million), most of which was due to a capital injection by Bank Leumi in order to facilitate the bank's business plan aimed at reaching a balance sheet total of $1 billion by the end of 2008. However, the economic crisis disrupted the plan, and Bank Leumi promised the National Bank of Romania to provide Bank Leumi Romania a $50 liquidity line as a lifeline in case of liquidity problems.
Credit to public grew by 6% to 941 million leu.
Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2009
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