At group level, net profit reached RON694 million, from RON768 million in H1/2023.
During the first half of the year, BRD Group net banking income increased by 5.7% YoY compared to the same period in 2023, amounting to RON 1,968 million. Net interest income, the key contributing factor to growth, marked an advance of 7.3% YoY during H1 2024, given a dynamic commercial activity across all business segments, somewhat tempered by higher cost of funding.
Net fees and commissions were up 6.5% YoY.
Operating expenses were up by 8.9% YoY in H1 2024, evolution mainly driven by the new levy tax on turnover, staff costs and base effect linked to the downward adjustment of deposit guarantee and resolution funds cumulated contributions during Q2 2023.
BRD Group net loans outstanding, including leasing receivables, reached RON 45 billion at end of June 2024, reflecting a double-digit increase, of +14% YoY.
On the retail segment, net loans outstanding grew by +8.5% YoY at June 2024 end, with a solid contribution from both individuals and small business customers.
Individuals’ loan origination volumes marked record breaking growth, reaching RON 5.2 billion (+51% YoY in H1 2024), propelled by solid numbers for both consumer (+38% YoY in H1 2024) and housing loans (+68% YoY in H1 2024). Small businesses contributed also to the segment growth, with net loans outstanding reaching an increase of +46.1% YoY at June 2024 end, following improved lending processes and product offering, but also good performance in governmental programs.
Lending on corporate segment continued to deliver a strong performance (net loans outstanding +22.3% YoY at June 2024 end), driven by both SMEs (+14.3% YoY) and large companies (+26.9% YoY).
“During the 1st half of the year, BRD achieved a strong commercial performance across all business segments. Our loan portfolio grew by +14% on a yearly basis, building on a strong contribution from both corporate and retail segments,” stated Maria Rousseva, CEO of BRD Groupe Société Générale.
As of June 2024 end, new loans approved through the IMM Plus program reached RON 3.1 billion, +90% YoY vs H1 2023. Additionally, leasing activity maintained a substantial growth pace (+20.3% YoY at June 2024 end).
The quality of the loan book remained solid during the first half of the year, with NPL ratio* around record low level, reaching 2.2% at June 2024 end (slightly increasing from the historical low of 1.9% at 2023 end), while NPL coverage stands at a comfortable level (77.3% at June 2024 vs 75.9% at 2023 end).
Net cost of risk accounted for a RON 90.8m net provision allocation during H1 2024, compared to RON 5.2m net provision release in H1 2023, reflecting a closer to “through the cycle” level.
As of June 30, 2024, the Bank’s network reached 389 branches (vs June 30, 2023: 441 branches as of June 30, 2023) and an enriched number of 24/7 self service areas (212 vs. 169 as of June 30, 2023, within more than half of its branches).
Regarding the digital offer, BRD continues to advance on its roadmap, with new functionalities added to its mobile application and/or web platform. The most recently launched include the cashback loyalty program addressed to BRD card customers, and the intrabank foreign exchange between own accounts, available 24/7/365. You BRD application continues to grow also in the number of users, reaching nearly 1.6 million milestone, up by +20% YoY as of June 2024 end.
(English version by Catalina Apostoiu)