EBRD bank returns to profit
The European Bank for Reconstruction and Development announced Wednesday that it returned to profit in 2010, aided by strengthening economic recovery across emerging Europe.
Net profit hit 1.4 billion euros ($1.9 billion) last year, compared with a net loss of 746 million euros in 2009.
"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 said in a statement.
"The bank recorded a net profit of 1.4 billion euros 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," it added
The London-based lender, which was formed in 1991 to help former communist nations in their transition to market economies, said it had invested funds in a record number of projects last year.
"The return to profit was achieved in a year of record investments as the EBRD continued its vigorous response to the impact of the global financial crisis and its aftermath on its countries of operations," the bank said.
"It made a record number of 386 individual investments, committing an unprecedented level of financing of 9.0 billion euros, compared with 7.9 billion euros in 2009."
The EBRD usually invests in private enterprises together with commercial partners across its zone, that comprises nations like Moldova, Russia, Tajikistan and Ukraine.
"We are very pleased with the financial results that we achieved in 2010, which build on operational results with a record level of new investments providing vital support to the region in which the bank operates," EBRD President Thomas Mirow said.
"The bank is very well capitalised and this risk-bearing capacity allows it to sustain a high level of investment and be counter-cyclical."
© 2011 AFP