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Continued strong operational and financial results of the EBRD for the third quarter
In the first nine months of 2000, the European Bank for Reconstruction and Development (EBRD) continued to increase its level of operations in central and eastern Europe and the Commonwealth of Independent States (CIS). Forty-eight new projects were signed totalling €1.1 billion, compared with 42 projects worth €836 million for the same period last year. The Bank also approved 68 new projects totalling €1.8 billion compared with 61 projects worth €1.3 billion for the same period in 1999.
The Bank’s operating profit before provisions during the first nine months of the year was €257.5 million, nearly twice the level reported in the same period in 1999. Provisions for the first three quarters of the year were €91.5 million, resulting in cumulative provisions on banking operations of €1.2 billion at 30 September 2000 (end of September 1999: €1.1 billion). After provisions, the EBRD reported a net profit of €166.0 million for the first nine months of 2000, compared with a profit of €9.7 million for the same period in 1999. As at 30 September 2000, the Bank had authorised capital of €20 billion and paid-in capital and reserves of €5.2 billion.
"The Bank is significantly stepping up the volume of its operations across the countries of central and eastern Europe and the CIS. In addition, the combination of good returns from the equity and loan portfolio and from treasury activities, together with prudent cost control, enabled the EBRD to record strong third-quarter financial results," said Steven Kaempfer, Vice President, Finance. "This encouraging trend is expected to lead to a further substantial increase in the level of activity of the Bank during the last quarter of the year."
Business volume (new projects signed) for the current 12-month rolling period (1 October 1999 to 30 September 2000) reached €2.4 billion, compared with €1.6 billion in the year-earlier period. The Bank's portfolio (net outstanding commitments) reached €11.6 billion at the end of September 2000 and operating assets (net outstanding disbursements) were €7.5 billion, up from €6.3 billion at 30 September 1999.
General administrative expenses, including depreciation for the first nine months, remained well within budget at €135.4 million (1999: €118.9 million) and reflected the Bank’s continuing commitment to expenditure discipline.
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Note to editors:
For the third quarter of 2000:
Operating profit before provisions: €124 million (same period in 1999: €76 million).
Provisions: €28.1 million (same period in 1999: €62.4 million).
Net profit after provisions: €95.8 million (same period in 1999: €13.6 million).
The balance sheet and profit and loss accounts are available upon request.
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