ENP Newswire -
Release date- 01082014 - Net profit of RON 123 million in the first half of 2014.
In the first half of 2014 the gross loans in the Romanian banking system continued to decrease (-4.2% yoy), especially triggered by the negative evolution of the corporate segment, while deposits maintained their positive trend (+4.9% yoy).
BRD outstanding amount of gross loans to individuals reached RON 17.0 billion, remaining stable over the last 12 months (vs -2.6% for the market). Housing loans' outstanding amounts increased by 9.0% yoy, significantly outperforming the market (+7.0%), thanks to our leadership position on 'Prima Casa' program. The corporate lending activity remained subdued, generating a gross volume decline of 11.9% yoy (also due to material write-off operations of non-performing loans fully covered by provisions) to RON 15.4 billion.
Deposits increased by 2.9% compared with
Net banking income was down 8.6% compared H1-13, influenced by a reduction in net interest margin, triggered by adverse volume and structure effects. The net fees and commissions remained almost stable compared to H1 2013 (-0.5%), with positive impacts generated by sales of retail packages, custody services and IPO intermediation.
The enhanced operational efficiency translated into a decrease in operational expense by 0.9% vs H1-13. The cost to income ratio for H1-14 stood at 48.9%.
Non-performing loans ('NPLs') ratio according to IFRS decreased to 23.4% as at
The net cost of risk decreased by 25.3% in H1-14 compared with the same period of 2013 and stood at 289 basis points (vs 369 basis points in H1-13). IFRS NPLs coverage with provisions was further improved to 71.2% as at
Net profit for the period reached RON 123 million.
With a solid capital base, the bank maintains a comfortable capital adequacy ratio of 16.4%, under Basel III regulations.
The interim report is available to public and investors on the website of the bank: www.brd.ro. Copies of the documents can also be obtained upon request, free of charge, at the head office of
Figures are at stand alone level, according to the International Financial Reporting Standards (IFRS)
BRD is part of
Retail banking in
International retail banking, financial services and insurance
Corporate & Investment banking, private banking, asset management and investor services
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