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02 Aug 2017

The main financial ratios of BRD-Groupe Société Générale as at June 30, 2017 at consolidated level, according to the International Financial Reporting Standards (IFRS):


Lending on the Romanian market shows signs of improvement, supported by ongoing economic growth and rising disposable income. Gross loans increased by +3.5%* YoY vs. Jun 16 end, with loans to individuals up by +5.1%* and loans to companies higher by +2.0%* YoY, showing first signs of recovery. Loans to individuals continue to be backed by housing loans as the main growth driver (+10.1%* YoY) while consumer loans remained quasi stable on a yearly basis, as the increase in local currency originated loans only slightly outpaced the decrease of the FX component.
Banking system deposits growth remained strong, above 8%* YoY, for both segments: individuals’ and companies, in spite of the low level of interest rates.

BRD maintained its commercial momentum in the first half of 2017, with the number of active individuals customers increasing by 21k compared to the same period of last year. Customers’ equipment rate (the average number of products per active customers) further expanded from 3.99 at June 2016 end to 4.13 at June 2017 end, marked by the overall tendency for an increasing degree of digitalization. The stock of internet and mobile contracts reached 1.25 million as of June 2017 end, +27.1% compared to June 2016.
In particular, customers’ interest for mobile banking application is constantly increasing as shown by the strong growth of MyBRD mobile subscriptions (number of contracts up 59.2% versus June 2016).

BRD further improved customers’ digital banking experience by offering new features for its web and mobile banking applications. Individuals now have the possibility to receive money by Western Union directly through MyBRD Net and MyBRD Mobile. In addition, mobile users have the ability to log into the application and authorize payments using fingerprint authentication, benefiting from a secure and convenient experience.

BRD Group net loans outstanding amount reached RON 29.8 billion, +4.5%* higher compared to June 2016 end benefitting from a strong advance on individuals and large corporate segments. Retail loans outstanding is up +6%* vs. June 2016 end, as the increased demand drove the individuals’ loan production higher by +9.1% versus H1-2016, to RON 3.1 billion, pushed by the +14.2% increase in new consumer loans. Non-retail outstanding loans increased by +1.6%* YoY, driven by loans to large corporate customers (+5.4%* compared to June 2016 end), confirming once again BRD’s strong position on the segment.

Deposits inflows remain strong on an annual basis (+6.8%* versus June 2016): retail and non-retail customers increased their savings by +7%* YoY and +6.5%* YoY, respectively. In a context of persistently low interest rate environment, deposits on current accounts further expanded, by +26%* YoY compared to June 2016 end.

The ratio of net loans to deposits is at 69.1% (-1.5 pts vs. June 30, 2016 and +1.6 pts up compared to December 31, 2016).

BRD Group’s net banking income amounted to RON 1,342 million, +2.1% compared to H1-2016, excluding  non-recurring elements booked in the first half of 2016 (gain from AFS and VISA Europe transaction, which totaled RON 121 million). Net banking income increase comes on improved net interest income (+5.5% YoY, on positive volumes effect), which more than offsets the decrease in fees and commissions income of -3.7% YoY. Net fees and commissions benefited, on one hand, from revenue growth on card activity and higher commissions from capital and financial markets services, but continued, on the other hand, to be impacted by the lower fees on transactional banking products (influenced, notably, by continuous structural changes in the channel mix and higher competitive pressures).

Operating expenses increased by +2.1% YoY, with staff expenses quasi stable while other costs categories registered +3.8% advance. Higher non-staff expenses stemmed mainly from the +8.6% increase in the cumulated contributions to the Bank Deposit Guarantee Fund and the Resolution Fund. Group cost/income ratio reached 53.7% in H1-2017 compared to 49.2% in H1-2016; after adjusting for non-recurring elements, C/I ratio remains unchanged, at 53.8% in H1-2017 vs. 53.7% in H1-2016.

Gross operating income is up +2%, when excluding non-recurring items (gain from VISA Europe transaction and AFS instruments).

BRD Group registered a further improvement of asset quality in the first half of 2017, as shown by lower NPL ratio, 8.5% at Jun-17 end vs. 11.8% at Jun-16 end, coupled with quasi stable coverage ratio, 75.0% at Jun-17 end vs. 74.7% at Jun-16 end (all ratios according to EBA methodology), as a result of write-offs and sales of non-performing loans. The net cost of risk registered a RON 270m net release in the first half of 2017 on recognition of insurance indemnities, recoveries on non-retail defaulted portfolios and gain on sale of non-performing loans portfolio.

In this context, BRD Group recorded a significant increase in profitability in the first half of the year: the net result reached RON 750 million in H1-2017, almost doubled (+96.8%) compared to H1-2016, leading to a return on equity of 22.1% compared to 12.1% in H1-2016. Excluding non-recurring elements, net profit increased 2.7x compared to the same period of the last year.

BRD provided further confirmation of its sound capital position, maintaining a comfortable capital adequacy ratio at 19.4% as of June 2017 end (individual level, under Basel 3 regulations with national discretions) versus 19.1% as of June 2016 end.   

“BRD delivered a very solid performance in the first half of 2017, marked by strong financial results, a significantly improved risk profile, and further continuation of commercial growth. We continue to invest in the digital offer, aimed at further improving our customers’ banking experience. We also maintain our focus on constantly improving the quality of our products and services and refining our customer centric business model. At the same time, we restate our commitment towards financing the economy and creating value for our shareholders and partners.” François  Bloch, CEO BRD-Groupe Societe Generale.

BRD financial results for the six months ended June 30, 2017 are available to the public and investors on the website of the bank: beginning with 09h00. Copies of the documents can also be obtained upon request, free of charge, at the head office of BRD-Groupe Société Générale, located at 1-7, Ion Mihalache Bd., 1st district, Bucharest.


(*) Variations at constant foreign exchange rate

BRD - Groupe Société Générale has 2.27 million active customers and operates a network of 790 units. BRD has a leading position on the card market with approx. 2.4m cards and a network acceptance of approx. 29,500 POS and more than 1,500 ATMs. Total assets of the Bank at June 2017 end amounted to RON 51.54bn.

BRD is part of the Société Générale Group, one of the largest European financial services groups. The group has 148,000 employees in 76 countries and 30 million customers worldwide in its three key activities:

Retail banking in France
International Retail Banking, Financial Services and insurance
Corporate and investment banking, private banking, asset management and securities services; facebook;


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