The lender said its revenues were resilient despite a lower interest environment, reporting net banking income of RON720 million in the first quarter, a slight decline from RON721 million in the first quarter of 2020.
At group level, BRD reported a net profit of RON222 million in the first quarter, 7.6% lower on the year, and net banking income of RON759 million, relatively stable compared with RON767 million in the same period last year.
The quality of the lender’s loan book remained solid in the first quarter, with an NPL ratio of 3.3% at the end of March 2021, stable compared with end-March 2020. The net cost of risk reached 55 basis points in the firts quarter, mainly relating to retail portfolios, while the bank’s NPL provision coverage was maintained at a high level of 73.3% at end-March 2021.
The bank’s assets stood at RON63.1 billion at the end of the first quarter, 2.5% higher compared with the end of 2020. At group level, BRD’s assets amounted to RON65 billion, up from RON63.5 billion at the end of 2020.
New retail loans in the first quarter grew 9% on the year, driven by 19% growth in consumer lending, as well as mortgage lending outside government-subsidized programs.
Corporate lending grew 7.8% on the year in the first quarter, driven by 19.4% growth in SME financing, including leasing.
During the first quarter of this year, BRD structured the most important green loan granted so far in Romania, worth RON1.25 billion.
“Despite the restrictive measures still in place to contain a third wave of the pandemic, BRD had a strong start of the year. The individuals’ loan production was significantly up and corporate lending was fueled by very dynamic SME financing. We also granted the largest green loan in Romania to date, a testament to our ambition to contribute to the development of a more sustainable world,” said Francois Bloch, CEO of BRD Groupe Societe Generale.