STOCKWATCH - RCI Keeps SocGen's Romanian Arm BRD at 'Buy'

RCI also said it maintained BRD’s 12-month price target of 11.0 lei ($3.7/2.9 euro) per share.

"The bank will face a more challenging environment in the fourth quarter and in 2009 which should translate into a slower loan growth and deteriorating profitability. However, we consider that BRD is one of the best placed Romanian banks to cope with more difficult market conditions," RCI said in a statement.

BRD reported on Monday a net profit of 1.039 billion lei for the first nine months of 2008, 52% higher on the year. This result includes revenue from the sale of BRD's 25% in Romanian insurer Asiban earlier this year. Deposit portfolio expanded 25% on the year, and the loan portfolio rose by 35%, the lender said without providing additional figures.

Blue-chip BRD stock lost 3.7% on the Bucharest Stock Exchange by 1045 GMT, trading at 9.1 lei.

(1 euro = 3.7787 Romanian lei)