The bank said in a statement its non-performing loans ratio dropped to 16.4% in the first quarter from 20.3% at the end of March 2015.
“The first quarter marked a good start to 2016, illustrating a pronounced improvement in operating performance and dynamic activity on individual and large corporate customers. Going forward, BRD will continue to pursue market opportunities by capitalizing on its universal bank model, in order to further strengthen commercial activity, while ever increasing customer satisfaction”, said BRD CEO Philippe Lhotte.
The bank said its gross operating result and the net profit were influenced by the booking in the first quarter of the entire annual contributions to the Bank Deposit Guarantee Fund and the Resolution Fund.
The bank’s net loans outstanding increased by 1.1% in the first quarter compared with the first quarter last year thanks to unsecured consumer and housing loan growth as well as intensified commercial activity on large corporate clients.
Net loans for individuals increased 4.9%, to RON1.1 billion. New loan volumes came especially from unsecured consumer loans, which accounted for 70% of new loans granted in the first quarter.
Net loans for the corporate segment increased 8.5% compared with the first quarter of 2015, as the segment further delivered strong performance in a context marked both by an improvement of the macroeconomic situation and increased competitive pressures.
The bank’s deposit base grew 6.9% compared with the first quarter last year, both on the retail and non-retail segments, sustained by deposits on current accounts.
BRD Group’s net banking income amounted to RON647 million, up 3% compared with the first quarter of 2015, given the rise in net interest income (+7.2%) thanks to positive interest rate and volume effects and higher net fees and commissions (+4.8%). Excluding non-recurring items (gains on sale of available for sale instruments registered in 1Q-2015), net banking income increased by 6.2%.