Its net banking income stood at RON1.47 billion in January-June 2021, up 2.7% from RON1.43 billion in the first six months of 2020.
On group level, BRD reported a net profit of RON625.8 million in the first half of 2021, 50.9% higher on the year, and net banking income of RON1.53 billion, up 1.7% compared with RON1.51 billion reported in the same period in 2020.
In January-June 2021, new loans granted to private individuals grew 58% on the year, both on the property loan segment (+52%) and on the consumer loan segment (+61%).
On June 30, 2021, the bank’s total assets stood at RON65 billion, higher than RON62 billion on December 31, 2020. On group level, the assets saw a 5% increase to RON67 billion.
In the first six months of 2021, corporate lending grew 24% year-over-year, with the significant increase of 37% on the segment of small and medium-sized enterprises (SMEs) being sustained by government backed lending programs (RON700 million approved loans within IMM Invest Program in just 2 months from its relaunch). The outstanding performance on the segment of large companies, of +21% year-over-year, comes to consolidate BRD’s position of leading partner for large corporations.
In January-June 2021, customer deposits continued their consolidation on both retail and corporate segments, seeing an annual increase of 12%. The increase was due mainly to the corporate segment (+20% year-over-year) for both SMEs and large corporate customers, each seeing double-digit growth.
“Digital roadmap is accelerating, with BRD expanding even more on YOU BRD functionalities to enhance customer experience. Two major deliveries are now in pilot phase: online lending and remote onboarding. Additionally, the mobile version of the e-trading platform, Anyma Online Trading, was launched. The increased focus on the acceleration of digitalization is visible in the +19% growth in number of customers actively using remote channels at end of June 2021”, per the report.
In the first half of 2021, the bank’s net interest income was rather resilient, of RON1.01 billion, down 2.7% year-over-year. Fee and commission income grew 13.6% on the year in the first six months of 2021, due to increased clients’ trading volume and dynamic activity on the capital market.
At end-June 2021, the non-performing loan (NPL) ratio (on bank level, according to European Banking Authority definition) stood at 3.3%, slightly lower than 3.5% at end-June 2020, despite the 2021 regulatory changes (i.e. new default definition) and moratoria exits, further reinforcing the Bank’s strong asset base and efficient collection activity
NPL coverage held solid at 74% at end-June 2021 versus 75% at end-June 2020. The overall portfolio quality was reflected in risk costs as well, with a net reversal of RON 39 million in H1-2021 versus a net charge of RON 225 million in H1-2020 at the onset of the Covid-19 pandemic. The net cost of risk release reflects the joint effects of economic rebound and consistent recoveries on non-performing portfolio.
“Romanian economy continued to show resilience in Q1 2021 amid the increased adaptation of economic agents to functioning during a pandemic alongside policy support. GDP expanded by 2.9% q/q (seasonally adjusted) in Q1 2021, one of the highest growth rates among EU member states, while annual contraction softened to -0.2% YoY (gross series). The reading surprised on the upside, but a major role in the outperformance was played by statistical base effects, the strong rise in annual growth of real sector statistical indicators in March 2021 owed to the low base, fuelling overall Q1 2021 performance. According to GDP breakdown on components, domestic demand remained a drag of economic expansion (-0.4 ppts contribution to growth), but with household demand back in positive territory (+0.4 ppts), while the gross fixed capital formation consolidated its positive contribution (+2.0 ppts). Net exports kept their negative contribution to growth (-2.7 ppts) given the quasi-stable volume of exports (-0.2% YoY), while imports expanded (+4.7% YoY)”, the lender said in report.