Net income from interests grew 11.4% on higher volumes and higher volumes and positive structure shifts, in a favourable interest rate environment. Revenues from fees and commissions increased by 2% on the year in the first half helped by intensified card activity, the bank said.
The bank’s operating revenue grew 9%, to RON1.565 billion, and its net profit climbed 4.7%, to RON803 million.
The bank’s loan portfolio amounted to RON29 billion at the end of June, up 2% on the year, while customer deposits stood at RON45 billion, up 2.6% on the year.
“The financial performance reconfirms that, in full transformation process, we continue to have a solid basis, so that we can fully achieve the objectives of digitalization, simplification and efficiency for our clients. We are moving towards a business model with multiple digital channels, which will be implemented gradually, while maintaining our brick-and-mortar presence. ContALL – the first aggregator of bank accounts in Romania and a first step towards Open Banking – and Instant Top Up are just a few examples of our digitization approach,” said Francois Bloch, CEO of BRD Groupe Societe Generale.
BRD Group registered a gross operating profit of RON805 million, compared with RON742 million in the first half of 2018, up 8.5% (+12.9% excluding the contribution to Deposit Guarantee and Resolution Funds).
The group’s NPL ratio (non-performing loans) dropped to 3.8% end-June from 6.3% end-June 2018, with a coverage ratio of 75.7%.
BRD Group’s net loans, including leasing receivables, were up 2.3% compared with June 2018, driven by retail and large corporate segments, while deposits from customers grew 1.9%.