EBRD records €1.4 billion net profit for 2010

PanARMENIAN.Net - The EBRD significantly increased profits in 2010 as emerging Europe started to pull out of the worst recession in a generation and most countries in the region started to see economic growth again.

The Bank recorded a net profit of €1.4 billion for 2010, on the back of a strong growth in investments and the value of the Bank’s equity holdings. As a result of the recovery the Bank also had lower loan loss provisions. The profit compared with a net loss of €746 million in 2009.

The net profit in 2010 will strengthen the EBRD’s capacity to bolster the recovery in its region with new investments in 2011, the first year of the Bank’s business strategy for the period until 2015. Backed with a strong pipeline of upcoming projects, investments will aim especially to address vulnerabilities such as lack of diversification of real economies, underdeveloped domestic capital markets and the need for a strong focus on energy efficiency.

The EBRD maintained its strong capital position during the year and as a triple-A rated institution it continued to be able to borrow at favorable rates. It also maintains high levels of liquidity and enjoys the strong support of its shareholders, who last year approved a 50 per cent increase in the Bank’s authorized capital to €30 billion, to become effective during 2011.

2010 also saw significant growth in the three key strategic initiatives. Investments in the EBRD Early Transition Countries (Armenia, Azerbaijan, Belarus, Georgia, Kyrgyz Republic, Moldova, Mongolia, Uzbekistan, Tajikistan and Turkmenistan) rose by 80 per cent to €920 million with 114 projects. The Bank financed 71 projects in the Western Balkans, 39 per cent more than in 2009, with business volume there exceeding €1 billion for the first time. Investments under the Sustainable Energy Initiative rose 64 per cent to €2.2 billion and accounted for nearly a quarter of total EBRD financing in 2010.