BRD GROUP RESULTS FOR Q1 2026

BRD GROUP RESULTS FOR Q1 2026:                                                              

RESILIENT commercial AND FINANCIAL DYNAMICs 

Press release
Bucharest, April 30^th, 2026

Main commercial trends and financial indicators of BRD Groupe Societe Generale at March 31st, 2026 at consolidated level, according to the International Financial Reporting Standards (IFRS):

- Commercial dynamics moderating, within a challenging economic climate
•    net loans outstanding (including leasing financing), +8.2% YoY as of March 2026 end, driven by both retail and corporate segments (+8.6% YoY and +8.2% YoY, respectively)
•    total deposit base, +14.3% YoY as of March 2026 end
•    BRD Asset Management, holding a top position within Romania’s UCITS market, with assets under management (AUM) of RON 9.4 billion at March 2026 end, +37% YoY 
•    ongoing growth in e-banking services adoption, reflected in the rising number of YouBRD users, to 1.92 million, +12% YoY as of March 2026 end and increasing volumes of transactions, + 24% YoY in Q1 2026

- Supporting clients’ transition to environmentally sustainable business models
•    cumulated sustainable finance production since 2021 reached EUR 2.36 billion as of March 2026 end
•    BRD Sogelease joined the strategic partnership with Auchan Romania, expanding the financing solutions available to Auchan suppliers by integrating financial leasing to support green and sustainable investments

- Resilient financial performance: gross operating income RON 506 million in Q1 2026 (quasi flat vs. Q1 2025) 

- Continued cost discipline: C/I down to 52.4% in Q1 2026 (-72 bps YoY) and 46% excluding tax on turnover

- Solid loan book quality: NPL ratio of 2.5%; comfortable NPL coverage: 65.9% as of March 2026 end

- Net cost of risk: lower net provisioning YoY in Q1 2026, reflecting resilient mortgage and corporate portfolios

- Net profit of RON 369 million, +6% YoY, adjusted ROE ~16% in Q1 2026, excluding tax on turnover

“During the first quarter of the year, in an environment marked by increased macroeconomic pressures and geopolitical uncertainty, further amplified by the escalation of the conflict in the Middle East toward quarter‑ end, BRD Group sustained its support for customers and its focus on long‑term value creation, delivering growing commercial results and resilient financial performance.
Net loans outstanding, including leasing financing, increased by +8% YoY, with close to high single digit growth across both segments, retail and corporate. Lending to individuals and large corporates marked advances of +10% YoY, with overall demand softening, though still supportive. 
With a clear focus on maintaining high standards and meeting customers’ evolving expectations, our mobile application is enriched constantly with new features, enhancing customer experience and long‑term engagement. As a result, customers’ digital activity continued to expand, reflected in the growing number of YouBRD mobile app users, along with increased transaction volumes.
BRD delivered resilient financial performance, marked by softening revenue dynamics, costs under strict control, despite a significant mark of higher tax environment and persistent inflation, whereas credit quality indicators remained sound. At the same time, BRD capital and liquidity positions were maintained at comfortable levels”, said Maria Rousseva, CEO of BRD Groupe Société Générale

Solid customer relationships ensuring robust commercial performance in a difficult macroeconomic context
Net loans outstanding, including leasing financing, reached RON 55.9 billion, increasing by +8.2% YoY (out of which net outstanding of leasing financing advanced by +3.1% YoY). Both corporate and retail client segments kept growing, but the trend tempered given the constrained macroeconomic climate. Retail lending was the primary growth driver (+8.6% YoY) sustained by the performance on private individuals’ segment. Individuals’ demand for housing loans remained resilient in spite of eroding purchasing power and sluggish economic growth. Corporate lending rose by +8.2% thanks to continued commercial performance on large corporate clients (+10.2% YoY), where BRD enjoys strong customer relationships.

BRD Group remained focused on scaling sustainable financing solutions. Cumulated sustainable finance production since 2021 reached EUR 2.36 billion, of which EUR 34 million originated in Q1 2026.

In March 2026, Auchan Romania and BRD Sogelease announced the expansion of their partnership dedicated to Auchan’s active suppliers and transport companies. The program provides access to dedicated financial leasing solutions for green and sustainable investments, supporting fleet modernization and energy efficient operations. Eligible assets include electric and hybrid passenger vehicles, electric or low emission light and heavy commercial vehicles, energy efficient logistics equipment with reduced environmental impact, and energy efficient industrial solutions for warehouses and production facilities.

Total deposit base reached RON 75.7 billion, up by +14.3% YoY, with higher inflows from corporate and private individuals. Evolution of retail deposits continued to be influenced by the monthly issuances of Romanian government bonds for individuals, offered at attractive yields, yet remained robust thanks to a large and diversified client base.

Non-deposit saving solutions marked a strong performance in the first quarter of 2026. BRD Asset Management, which manages 12 investment funds for over 193,000 clients, holds a top position within Romanian UCITS market, with a 23.8% market share at March 2026 end, and total assets under management reaching RON 9.4 billion up by +37% YoY, as of quarter end. 
In March 2026, BRD Asset Management entered into an agreement with Patria Bank for the acquisition of 99.9944% of Patria Asset Management. Patria Asset Management manages 4 open-ended funds and two ETFs: BET Patria-Tradeville, the largest ETF on the Romanian market in terms of AuM (RON ~1bn) and ETF Energie Patria-Tradeville. The acquisition will place BRD Asset Management in a top position on the fast-growing ETF market and will improve its product mix offering. Completion of the transaction remains subject to the approval of the relevant regulatory authorities.

E banking driving higher customer activity, supported by ongoing enhancement of digital features

BRD continued to pragmatically adjust its branch network, to 334 branches as of March 31st 2026 (-24 YoY), while offering 24H self service capabilities for cash transactions in 266 locations. At the same time, customer engagement through digital channels increased further, reflected in the growing number of YouBRD users (1.92 million at March 2026 end, +12% YoY) and higher number of transactions via YouBRD (10.7 million, +24% YoY), totaling RON 17.4 billion (+35% YoY). 
BRD continued to advance on its digital roadmap by enhancing its digital offer and capabilities. Recent enhancements to YouBRD strengthen the bank’s digital offering and product accessibility, with the launch of Click to Pay, a global standard of payment, created by Visa and Mastercard, enabling fast and secure online payments at merchants that display the Click to Pay icon, without entering card details. Other functional updates include the issuance of debit card directly from the mobile application, the expansion of the list of products for PFA clients with escrow and trust account, available for viewing in YouBRD, and the rollout of international travel insurance, which can now be purchased 100% online as a standalone product directly through YouBRD.

Resilient financial performance

Within a challenging economic context and highly competitive market, BRD Group’s net banking income reached RON 1,062 million in Q1 2026 compared to RON 1,080 million in Q1 2025.

Net interest revenues, accounting for 71% of net banking income, totaled RON 759 million in Q1 2026, printing broadly stable versus the same period of the last year, with positive impact of expanding lending volumes across both retail and corporate segments, offset by negative structure and rate effects, more pronounced on liabilities.

Net fees and commissions amounted to RON 202 million in Q1 2026 (vs RON 240 million in Q1 2025) being influenced by previous year base effect linked to cards activity, partially compensated by dynamic custody, brokerage, and asset management activities, as well as increased fees from off - balance sheet commitments given improved client activity levels.

Other banking income reached RON 101 million, higher by +24.5% YoY, reflecting favorable trading and banking book results and an one-off revenue.

Operating expenses were maintained under strict management. Despite the persistently high inflation environment - with average inflation remaining at high single digit during Q1 2026 (avg inflation at 9.6% in Q1 2026) – expenses decreased by -3.0%, reaching RON 556 million compared to RON 573 million in Q1 2025. This evolution reflects the combined effect of lower staff expenses, no contribution requested for FGDB&RF (vs RON 49.6 million in 2025) and other cost savings mainly linked to real estate (on network downsize) and external services providers. Staff expenses were reduced by 6% YoY reflecting workforce adjustments given efficiency enhancing measures, in a rapidly evolving and highly competitive banking environment. On the other hand, tax on gross revenues doubled compared to Q1 2025, to RON 68 million from RON 32 million, as starting from 1st of July 2025, banks owe an additional turnover tax of 2%, on top of the already existing 2%. Other costs (excluding from costs base FGDB&RF and tax on gross revenues) were up by +5.5% YoY mainly on higher IT&C related expenses, reflecting depreciation of past investments and ongoing infrastructure and digitalization initiatives.

Excluding the impact of the tax on gross revenues and cumulated contributions to Guarantee and Resolution funds in 2025, operating expenses were reduced by 1% reflecting continued costs control and strong focus on improving efficiency.  

BRD Group gross operating income reached RON 506 million in Q1 2026 (vs RON 507 million in Q1 2025) whereas cost to income (C/I) ratio decreased at 52.4% in Q1 2026 from 53.1% in Q1 2025. Excluding the tax on gross revenues, C/I ratio was reduced by 4 pp to 46% in Q1 2026 from 50% in Q1 2025.

Regarding asset quality, cost of risk registered a lower net provisioning in Q1 2026, amounting to RON 53 million compared to RON 79 million in Q1 2025, reflecting resilient mortgage and corporate portfolios, while consumer loans portfolio proved more sensitive to macroeconomic evolutions. The NPL ratio reached 2.5%, while NPL coverage stood at 65.9%, as at March 2026 end.

BRD Group net result increased by +5.5% YoY in Q1 2026, amounting to RON 369 million (vs RON 350 million in Q1 2025), while ROE reached 13.8% (compared to 14.5% in Q1 2025), reflecting resilient performance in a challenging environment and a highly competitive market. Excluding the tax on turnover, ROE reached 16.1% in Q1 2026 vs 15.7% in the same period of last year.

BRD standalone capital adequacy ratio is at comfortable level, 22.9% as of March 2026 end. 
 

BRD Group financial results for the quarter ended March 31, 2026 are available to the public and investors on the website of the bank, www.brd.ro, beginning with 9h00. 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.

Notes:

NPL ratio, NPL coverage ratio (acc to EBA), at Bank level

If not stated otherwise, all variations are vs. Q1 2025 (for income statement related items) or March 2025 end (for balance sheet related items).

BRD - Groupe Societe Generale operates a network of 334 units. Total assets of the Bank at March 2026 end amounted to RON 97.9 billion.

BRD is part of the Societe Generale Group, one of Europe's leading financial services groups and a major player in the economy for over 160 years. The group has around 110,000 employees in 58 countries and more than 27 million customers worldwide and is built on three complementary business lines, embedding ESG offerings for all its clients:

• French Retail, Private Banking and Insurance

• Global Banking and Investor Solutions

• Mobility, International Retail Banking and Financial Services

www.brd.ro LinkedIn                                                 Media contact: Traian Traicu_traian.traicu@brd.ro