Net banking income increased by 10.1% to RON2.16 billion, supported both by rising interest income and other income categories.
Net interest income, accounting for 70.4% of total revenues, up by +7.0% YoY in H1 2025, performed on positive volume effect, given the growth of both retail and corporate loans, and favorable structure shift, with higher weight of corporate loans in total assets.
Interest income was partially reduced during the analysed period on the impact of negative rate effect, given offer adjustment against intensified competition and decrease in IRCC, mentions the bank.
Net fees and commissions remained on a strong growth path, up 17.9% YoY.
Net loans outstanding, including leasing financing, reached RON 52.2 billion, marking a +17.4% YoY increase compared to June 2024 end, sustained by strong lending activity across both corporate and retail segments. Lending to corporates stood out as the main growth driver, with an annual advance of +23.8% YoY, while the retail segment continued to gain traction, achieving a solid +13.7% YoY increase at June 2025 end.
The first six months of 2025 have been strong in loan origination for individuals, with production reaching close to RON 7 billion, up by +34.2% YoY vs H1 2024, building on robust performance in both consumer and housing loans. Consumer loan production totaled RON 4.1 billion, up +23.4% YoY, whereas housing loan production maintained a very strong growth pace, up by +53.2% YoY, to RON 2.9 billion. At end of June 2025, individuals’ loans outstanding increased by +14.4% YoY, whereas small businesses contribution to the segment was rather modest (+2.5% YoY).
Leasing activity continued its solid growth trajectory, with net outstanding of leasing financing up by +11.1% YoY as of June 2025, providing accessible and efficient financing solutions, tailored to customers’ needs.
New sustainable financing offered to retail and corporate customers amounted to EUR 78.4 million and EUR 272.5 million, respectively, in H1 2025.
“In spite of a more challenging and tense environment, during the first half of the year, BRD continued to deliver a solid commercial and financial performance and maintained its position as a reliable partner to both its customers and the broader Romanian economy. Commercial volumes maintained a strong growth pace across segments, with net loans outstanding, including leasing financing, increasing by +17% compared to June 2024 end. Lending on corporates anchored the expansion, up by +23.8% YoY, while retail segment kept a solid pace, up by +13.7% YoY, as of June 2025 end. Loan origination for individuals during H1 2025 reached close to RON 7 bn, advancing by +34% YoY, benefitting from strong demand on both consumer and housing loans products, higher average ticket and increasing number of granted loans,” stated Maria Rousseva, CEO of BRD Groupe Société Générale.
Operating expenses were up by +7.0 YoY in H1 2025, primarily influenced by higher staff costs, costs related to IT&C and external services providers.
BRD Group gross operating income reached RON 1,068 million in H1 2025 (+13.6% YoY) whereas cost to income (C/I) ratio improved to 50.7% in H1 2025 from 52.2% in H1 2024. Excluding the tax on turnover and the cumulated contributions to Deposit Guarantee Fund and Resolution fund, C/I would stand at 45.4% in H1 2025 (vs. 46.9% in H1 2024), -143 bps YoY.
The loan book quality continued to remain solid during H1 2025, with NPL ratio (Bank level) reaching 2.3% at June 2025 end, maintained below the banking system average, of 2.6% as of April 2025 end, while NPL coverage (Bank level) is at a comfortable level (71.5% at June 2025 end).
Net cost of risk evolution further confirms the normalization trend, with RON 142 million net provision allocation during H1 2025 (vs RON 91 million in H1 2024), given retail portfolio evolution, the review of default probability assumptions, partially compensated by NPL recoveries from previously written off loans.
As at June 30, 2025, the Bank’s network reached 357 branches (vs. 389 as of June 30, 2024) and an increasing number of 24/7 self service areas, covering more than 60% of its network (219 vs. 212 as of June 30, 2024).
The number of YouBRD users reached 1.83 million (up 18% yoy), while the number of transactions done via the app rose by 25% yoy, to RON28.7 billion in H1/2025 (up 52% yoy).
„Based on all of the above, BRD delivered solid increase of revenues during the first half of the year, above the growth in operating expenses, whereas credit quality indicators remained sound. At the same time, BRD’s liquidity and capital levels are robust, laying a firm foundation for sustainable growth”, said Maria ROUSSEVA, CEO of BRD Groupe Société Générale.
(English version by Catalina Apostoiu)