The group’s total assets stood at RON58.9 billion end-March, 2% higher compared with end-2019.
BRD Group net loans, including leasing receivables, grew 2.4% on a strong corporate financing activity (+4.3% YoY), with a solid advance on leasing (overall leasing portfolio up by 27.6% YoY); sustained collection of deposits (+5.9% YoY), and growing use of digital channels (MyBRD Mobile & MyBRD Net unique active users up by +19% YoY), the bank said in its earnings report.
“In the first three months of the year, BRD delivered a dynamic commercial performance. Robust business activity was registered on all segments, with continued lending growth, supported by strong corporate financing activity, sustained collection of deposits and growing use of digital channels. Though in the economic context generated by the COVID-19 pandemic the profitability was scaled back by the negative cost of risk, the operational performance remained resilient,” said Francois Bloch, CEO of BRD Groupe Societe Generale.
The bank alone posted a net profit of RON233 million in the first quarter, down 19.3% on the year.
Retail deposits grew an annual 4.2% in the first quarter, driven by larger inflows in individuals’ savings, with current accounts up by 30% YoY. Corporate deposits advanced 9.3% YoY on a high increase of SMEs resources (+25.5% YoY). The ratio of net loans to deposits was 66.7% end-March 2020 end, down by 2.3 percentage points compacted with end-March 2019.
BRD Group net banking income reached RON767 million in the first quarter, down 2.2% on the year.
The quality of the loan book remained solid throughout the first quarter and the bank’s NPL ratio decreased to 3.3% (according to EBA definition) end-March 2020, from 4% end-March 2019. BRD built a high coverage with provisions of non-performing loans, standing at 73.3% end-March 2020.
Net cost of risk turned negative, to RON60 million (vs. RON26 million release in Q1 2019) influenced mainly by the recognition of a provision overlay related to the COVID-19 economic context, it said.