BUCHAREST (Romania), August 3 (SeeNews) – Romanian Bank BRD [BSE:BRD]which is part of French group Societe Generale, said on Wednesday its first-half net profit fell 1.9% year-on-year to 617 million lei ($127.6 million/€125.2 million). ).
BRD recorded a strong performance in the first half of 2022, with its gross operating income increasing by 13.2% annually to reach 785 million lei, the bank said in an unaudited financial report filed with the Stock Exchange. Bucharest, BVB.
“Building on solid commercial activity, BRD Group recorded a solid financial performance in the first half of the year. The best net banking income of the first half was recorded, up 7.6% compared to the same period of 2021 , mainly thanks to the substantial growth in interest, driven both by the increase in volumes and market rates, while very significantly increasing the remuneration of deposits collected, for the benefit of individual and corporate customers.The cost of risk was kept under control. As a result, BRD achieved a high ROE of almost 16%,” said BRD CEO François Bloch.
The BRD’s non-performing loan (NPL) ratio fell to 2.6% at the end of the first half of 2022, compared to 3.3% at the end of June 2021. The coverage of NPLs by provisions was stable at 77% at the end of first half of this year. The net cost of risk represented a provision charge of 52 million lei, compared to a reversal of 57 million lei in the same period of 2021, due to an overall degraded macroeconomic environment and outlook, partially offset by significant recoveries of non-performing and written-off portfolios.
BRD’s net banking income increased by 9% per year to reach 1.59 billion lei in the first half of 2022.
The bank’s loan portfolio grew by 8.9% year-on-year to reach Lei 34.6 billion during the reporting period, driven by strong performance in the retail and corporate segments. Customer deposits increased by 1.1% year-on-year to reach 53.8 billion lei at the end of June, mainly driven by household savings.
BRD’s capital adequacy ratio was 21.9% on an individual basis under Basel III regulations, well above the regulatory requirement of 10%. The bank’s total assets rose to 68.6 billion lei at the end of June from 67 billion lei a year earlier.
At the end of June, the bank had 481 branches in Romania.
Besides the bank, the BRD group in Romania includes BRD Sogelease IFN, BRD Finance IFN and BRD Asset Management SA. BRD Group’s overall net profit in the first half of 2022 amounted to Lei 617 million, down 1.4% year-on-year. The group’s total assets rose to 70 billion lei at the end of June, from 69 billion lei a year earlier.
The bank’s net profit increased by 34% to 1.279 billion lei. in 2021, boosted by the dynamism of commercial activity and lower costs.
The blue chip BRD traded down 0.45% to 13.22 lei at 1353 CET on Wednesday.
(1 euro = 4.9252 Romanian lei)
BRD – Groupe Societe Generale SA is one of the largest banks in South Eastern Europe, for more references, see the Top 100 banks