Net profit dropped by 1.9%, to RON617 million.
The bank has a 10.3% market share by total assets on June 30, 2022.
„In H1 2022, BRD showed a very good commercial momentum across the board, despite the challenging macroeconomic context induced by the war in Ukraine. Lending continued to be intense. Loan production for individuals continued to show a double-digit advance (+13% YoY in H1 2022), driven by housing loans (+77% YoY). Corporate lending marked a very solid performance (+15.8% YoY) built on both a robust activity on SME segment (+36.8% YoY) and a continued growth of loans to large companies (+7.5% YoY). BRD continued to actively support SMEs eligible under Governmental programs, with RON 1.4 billion approved loans in H1 2022,” said Francois Bloch, CEO of BRD Groupe Societe Generale.
At group level, total net banking income reached RON1.64 billion, up 7.6% from the first half of 2021, while net profit slid to RON617 million (from RON626 million in 1Q/2021).
Net interest income posted two-digit growth.
The group’s gross operating profit went up 10.7%, to RON789 million.
Excluding the contributions to Deposit Guarantee and Resolution Funds (69.2m RON vs 49.4m RON in H1 2021), operating expenses inched up by +2.5%, driven by 1) other costs categories (+3.2%), mainly due to higher expenses related to several external services and IT&C, and 2) moderate increase in staff costs (+1.9%), as the impact of price effect induced by a still tight labor market and inflationary environment, was partially offset by headcount reduction (-562 FTE vs June 21 end).
„Building on a solid commercial activity, BRD Group delivered in the first half of the year a robust financial performance, with best ever H1 NBI, higher by 7.6% versus the same period of 2021, mainly on the substantial growth in interest income, driven by both upward volumes and market rates. Inflation starts to progressively materialize on costs, operating expenses posting a moderate growth. The net cost of risk was well contained given the context, registering a RON 46 million provision charge (vs. RON 39 million release in H1 2021) driven by an overall deteriorated macroeconomic environment/ outlook, partially offset by important recoveries from non-performing and written-off portfolio. Consequently, BRD delivered in H1 2022 a high level of profitability and a ROE printing close to 16%. BRD remains committed for the long term to provide financial and expertize support for its customers and the economy,” added Francois Bloch.
The BRD Group cost/income ratio was reduced by 2.4 ppt (if we exclude the cumulated contributions to Deposit Guarantee and Resolution Funds), to 47.7% in H1 2022, from 50.1% in the same period of the previous year.
As of June 2022 the NPL ratio* (non-performing loans, according to EBA definition) reached 2.6% decreasing from June 2021 level of 3.3%, and provision coverage increased to 77% (+3 ppt.YoY).
BRD Group net loans, including leasing receivables, recorded a high growth (+8.9% YoY at June 2022 end). Loan production for individuals continued to show a double-digit advance (+13% YoY in H1 2022), driven by housing loans (+77% YoY).
Corporate lending marked a very solid performance (+15.8% YoY) built on both a robust activity on SME segment (+36.8% YoY) and a continued growth of loans to large companies (+7.5% YoY).
Client deposits reached RON53.7 billion, up 1.2% on an annual basis.
In a context of strong geopolitical tensions over the last five months and rapidly accelerating inflation driving a tightened market liquidity environment, retail deposits reduced by 1.3% compared to December 2021 end level, while SME’s deposits decreased by 7%.
(English version by Catalina Apostoiu)