Romanian lender BRD’s 9-mo net profit up 12.6% y/y

The financial result was boosted by solid performance across all revenue categories and intense lending activity across the board, the bank said in a financial report filed with the Bucharest Stock Exchange, BVB.

“Lending momentum was maintained at high levels. Financing of housing loans for individuals further advanced, with a 21% growth of new production. Market share on new consumer loans was resilient in a slowing down market after a record 2021. Corporate financing had a remarkable performance (+31% year-on-year) sustained by both its pillars, with an outstanding growth of lending of both SMEs and large companies,” BRD CEO Francois Bloch said.

Credit risk indicators remained at reasonable levels, with the non-performing loan (NPL) ratio still at the historically low level of 2.6% at the end of September, down from 3.2% at the end of the same period last year. The NPL coverage ratio increased by 3 percentage points, to 78%.

The bank’s net banking income rose by 11.6% to 2.449 billion lei in January-September, with net interest income increasing by 13% due to both solid volume growth and higher interest rates, and net commissions income registered a 2.5% annual increase.

BRD’s net loan portfolio expanded by 11.9% on the year in the review period, reaching 35.5 billion lei. Customer deposits grew by an annual 2.5%, reaching 55.3 billion lei at the end of September.

The net loans to deposits ratio reached 64.1% at the end of the nine-month period, compared to 58.7% at end-September 2021.

BRD’s capital adequacy ratio reached 21.9% on a standalone basis under Basel III regulations, compared to 27% at the end of the same period in 2021. The bank’s total assets grew by 3.5% on the year, to 68.96 billion lei at the end of September this year.

The bank’s branches tallied 470 at the end of September 2022, compared to 525 at the end of the same period last year.

In addition to the bank, BRD Group in Romania comprises BRD Sogelease IFN, BRD Finance IFN and BRD Asset Management SA.

The consolidated net profit of the BRD Group in the first nine months of 2022 amounted to 1.016 billion lei, up by 10.3% on the year. The group’s total assets grew by an annual 3.5%, to 71.174 billion lei at the end of September this year.

In 2021, the bank’s net profit jumped by 34% to 1.279 billion lei, boosted by dynamic commercial activity and lower costs.

Shares of blue-chip BRD traded 0.88% higher at 11.46 lei by 1438 CET on Friday on the BVB.

(1 euro=4.8876 lei)