In 2010, BRD posted net profit of RON501 million.
BRD’s net banking income fell 9% in 2011 to RON3.23 billion, from RON3.54 billion in the previous year, due to a decline in the net interest margin, the bank said in a statement. “However, commission revenue proved resilient due to contribution from fees for card operations and extra balance-sheet operations,” it said.
Costs remained stable at RON1.37 billion, so that the pretax operating income was down 15% on the year at RON1.85 billion.
The cost-to-income ratio stood at 42.7%, below the Romanian banking system average of 68%, BRD said.
The bank’s net risk costs fell 18% compared with 2010 to RON1.29 billion. BRD said non-performing loans account to 12.2% of total lending.
In 2011, the overall lending reached RON33.5 billion, up 1.1% on the year. Deposits inched up 0.9% from December 2010 to RON30.2 billion. Therefore, the loan-to-deposit ratio stood at 111%, again below the system average of 116.7%.
At the end of 2011, the bank’s network included 937 units, unchanged from the previous year, but the number of employees fell 5% to 8,245 people.
France’s Societe Generale owns 58.3% in the Romanian lender while the rest of the shares are traded in Bucharest. Monday, BRD closed flat at RON11.4 a share.