Romania’s SSIF Broker May Post RON70M Loss For '08

According to the company, registering the provisions in the company’s profit and loss account would rise the total expenses at RON89.6 million, leading to a RON70.4 million loss.

Prior to booking the provisions, SSIF Broker announced a RON1.3 million net profit for 2008, from RON38.3 million a year earlier, according to the preliminary results sent mid-February to the Bucharest Stock Exchange.

However, SSIF Broker’s profit might not be affected is the company registers its provisions in its capitals.

Romania’s National Securities Commission CNVM approved early-March an order to include the value adjustments for financial assets in the investment funds' own capital, instead of the profit and loss account.

End-2008, SSIF Broker’s own capital totaled RON86.5 million, according to the information published on its website.

For 2009, the company eyes a RON852,000 profit and revenues totaling RON8.5 million, 2-fold lower from RON19.2 million a year earlier.

Meanwhile, SSIF Broker estimates total expenses of RON7.6 million for 2009, also 2-fold lower on the year.

The company’s managers plan to reduce this year’s salary costs by 42.5%, from RON3.4 million to RON2 million.

SSIF Broker has a share capital of RON144.7 million split into 289.4 million shares with a face value of RON0.5.

According to the most recent data, local businessman Ioan Cartis owns an 8.22% stake in SSIF Broker, while construction company Intervalco in Baia Mare town owns a 6.18% stake and the firm’s general manager Petru Prunea, a 3.5% stake.

On March 27, Prunea has been replaced from the company’s Board president position with Anton Ionescu.

The broker’s new Board president owns a 4.16% stake in SSIF Broker.

Last year, SSIF Broker ranked ninth among the 77 brokers operating on Bucharest Stock Exchange, with transactions totaling RON645 million and a market share of 3.66%.

In the second part of Tuesday’s trading session on the Bucharest Stock Exchange, SSIF Broker shares were traded at the price of RON0.111 per unit, up 8.82% on the day.