News Column

BRD-Net profit of RON 123 million in the first half of 2014

August 4, 2014



ENP Newswire - 04 August 2014

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 June 2013, sustained especially by individuals' deposits' evolution. In this context, net loans to deposits ratio stood at 79.2% as of June 2014 (vs 91.4% as of June 2013).

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 June 2014 vs 24.8% as at December 2013, while the NPLs ratio according to the central bank definition (Loss 2 ratio) was 20.4% as at June 2014, in line with the banking system average.

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 June 2014 (vs 68.9% as at December 2013).

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 BRD-Groupe Societe Generale, located at 1-7, Ion Mihalache Bd., 1st district, Bucharest.

Figures are at stand alone level, according to the International Financial Reporting Standards (IFRS)

BRD-Groupe Societe Generale is the second bank in Romania in terms of assets and the no. 1 bank in the Romanian syndicated loans market. BRD - Groupe Societe Generale has 2.2 million customers and operates a network of approximately 870 branches. With almost 2.3 million valid cards and a network acceptance over 22,100 POS, and 1,500 ATMs, BRD is no. 1 on the Romanian card market. With factoring operations of EUR 918 million in 2013, BRD is the leader of the Romanian factoring market.

BRD is part of Societe Generale Group, one of the largest European financial services groups. The group has 148,000 employees in 76 countries and 32 million customers worldwide in its three key activities:

Retail banking in France

International retail banking, financial services and insurance

Corporate & Investment banking, private banking, asset management and investor services

www.brd.ro


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Source: ENP Newswire


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