Strong profits with record number of projects and all-time high investment
The European Bank for Reconstruction and Development (EBRD) reported another solid performance in 2017 and is well placed to continue investing vigorously across its regions after a record level of financing last year.
EBRD financing rose to €9.7 billion in 2017, from €9.4 billion in 2016. The number of individual EBRD projects in 2017 also rose to a new record of 412 after 378 in 2016.
The EBRD’s powerful financial performance further strengthened already-robust levels of capitalisation and contributed to the reaffirmation of the bank’s triple A rating with stable outlook from the three major credit rating agencies.
“We are in a very good position to respond to new business opportunities and have increased our resilience to potential external challenges,” said Chief Financial Officer András Simor.
The Bank’s net profit of €772 million in 2017 compared with €992 million in 2016 and an average for the last five years of approximately €620 million. The reduction was primarily due to lower gains on equity investments in 2017 of €332 million, versus €423 million in 2016.
Realised profits before impairment stood at €634 million in 2017, virtually unchanged from the €649 million posted in 2016.
There was a strong improvement in non-performing loans to 3.9 per cent of the Bank’s total loans, compared with 5.5 per cent in 2016 as a result of repayments, write-offs and the return of some loans to performing status.
The improvement was a reflection of a relatively benign risk environment as well as effective active portfolio management.
The EBRD’s net interest income remained stable at €754 million compared with €774 million in 2016, despite emerging signs of squeezed margins across various markets.
The Bank remains very strongly capitalised and its liquidity ratios are well above the required levels, a factor recognised as a particular strength by the market. It also again demonstrated discipline in the management of its costs.