Net earnings (RAS) came in at RON 215.2m for 2Q09, up 2.4% q/q but down 15.8% y/y, above both our forecast of RON 178.6m and the consensus estimate of RON 179.9m (range from RON 122.9m – RON 204.9m, source: Reuters). Net interest income (+5.9% q/q) was stronger-than-expected on the back of a recovery in the margin (+16bp q/q), a tangible sign the bank has benefited from improved market liquidity, and somewhat alleviated pressure from deposit competition in the sector, following Romania’s deal with the IMF supporting the currency. Net provisioning (14.9% q/q) was also lower-than-expected at 215bp (-42bp q/q), pointing to a slowdown in the deterioration of the loan book. This two lines more than offset a worse-than-expected performance on net fee income (+1.2% q/q) and total costs (+12.2% q/q). Balance sheet trends were negative, with the shrinking of both loans (-3.1% q/q) and deposits (-2.3% q/q). Overall, we expect the results to have a positive trading impact.