Leumi earns more during crisis

Bank Leumi, Romanian subsidiary of one of the largest Israeli financial groups, posted an 11.6 million-RON (2.7 million-euro) net profit in the first nine months of the year, up 59% in RON against the profit recorded in the similar period of 2008. The result is calculated in line with the international financial reporting standards (IFRS). In the third quarter of the year, the bank posted a 3 million-RON (0.7 million-euro) profit. "Because we were extremely cautious, the rise in non-performing loans was stabilised in June, when we set up a department for monitoring problematic loans," says Laurentiu Mitrache, chief executive of Bank Leumi. He says the bank's profit was similar according to Romanian Accounting Standards to that reported in international standards. Many banks report big differences between results calculated in line with local standards and those calculated in line with IFRS, with the difference lying mainly in the treatment of provisions.