In the first half of 2011, BRD reported a net profit of RON322.5 million. The results are calculated according to international accounting standards.
BRD said net risk costs rose 61% to RON715 million in the first half of 2012, largely due to the declining value of collaterals for non-performing loans.
Pretax profit was RON46 million, well below RON386 million in January through June of last year, BRD said in its financial report.
Net banking revenue fell 6% on the year to RON1.43 billion in the January-June period, hit by lower net interest margins, while the gross operating profit declined 9% to RON760 million,.
On the other hand, total loans rose 5% on the year to RON35.2 billion in the first six months, while overall deposits were up 13% to RON32.9 billion, BRD said.
End-June, BRD reported total assets of RON47.8 billion, down roughly 2% from RON48.7 billion in December 2011.
The bank’s return on equity fell to 1.3% at the end of June, from 11.1% in the year-ago month.
BRD runs 932 offices in Romania and employs 8,179 staff. French financial group Societe Generale is the bank’s main shareholder, with a 60.16% stake, while the five regional investment funds SIFs own together 18.6% of the bank’s shares.
At around 13:40 local time, BRD traded down 2.75% at RON8.5 a share in Bucharest, amid a slightly declining market. (EUR1=RON4.6118)