KEEPING UP STRONG COMMERCIAL MOMENTUM

BRD GROUP RESULTS FOR H1 2025:

Press release

Bucharest, July 31^st, 2025

Main commercial trends and financial indicators of BRD Groupe Société Générale at June 30^th, 2025 at consolidated level, according to the International Financial Reporting Standards (IFRS):

• Strong first half of the year in terms of commercial activity

• net loans outstanding (including leasing financing), +17.4% YoY as of June 2025 end, marking a significant increase in corporate lending (+23.8% YoY) and solid growth on retail (+13.7% YoY) 

• substantial expansion in loan origination for individuals, reaching close to RON 7 billion (up by +34.2% YoY in H1 2025), doubled vs. H1 2023

• growing deposit base, +8% YoY as of June 2025 end

• BRD Asset Management consolidated its 1^st position on UCITS market, marking a significant growth in assets under management to RON 7.3 billion, +42.6% YoY and 25.11% MS as of June 2025 end

• increasing adoption of e-banking channels, as evidenced by the higher number of YouBRD users, to 1.83 million, +18% YoY as of June 2025 end and growing number of transactions, + 25% YoY in H1 2025

• Consolidated position as a benchmark in sustainable financing, EUR 351m in H1 2025

• Higher operating performance and improved C/I ratio

• Solid credit quality indicators: NPL ratio (2.3%) and NPL coverage (72%) at June 2025 end

• Net cost of risk evolution further confirming the normalization trend

• Net profit of RON 764 million, +10% YoY, ROE 16% 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. 

BRD continues to consolidate its position as a benchmark in sustainable finance and reinforces its strong commitment to responsible development. New sustainable financing transactions to retail and corporate customers amounted to EUR 351m in H1 2025. In addition, the Bank’s efforts to cater to customers’ evolving needs are validated by the recent innovative launch of a product introduced for the first time on the Romanian market: a Sustainability-Linked Loan (SLL) specifically designed for SMEs.

On the digital front, day by day, our YouBRD mobile application continues to evolve, offering a more mature and refined set of features, and enjoys a higher engagement rate, with growing number of users (1.83 million, +18% YoY) and transactions (18 million, +25% YoY).

Ultimately, 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.

Strong commercial momentum across all business segments

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. 

In the first half of 2025, BRD continued to consolidate its position as a benchmark in the sustainable financing market in Romania, reinforcing its strong commitment to responsible development and enabling customers to achieve their green ambitions. New sustainable financing offered to retail and corporate customers amounted to EUR 78.4 million and EUR 272.5 million, respectively, in H1 2025. 

Key transactions on the corporate segment include BRD acting as lead arranger, lender, sustainability structuring bank and facility agent on NE Property BV’s EUR 190m “club loan” in June 2025 (out of which EUR 100m committed by BRD) and as Green Loan Coordinator on Distribuție Energie Oltenia SA.’s RON 1.7 bn syndicated loan in April 2025. 

Moreover, BRD is supporting urban regeneration in Romania and provides EUR 75 million green loan to Rivus Investments for major regeneration project in Romania’s second city, Cluj-Napoca, transforming an industrial site into a major entertainment, retail, cultural and office mixed-use project while improving the surrounding infrastructure. The loan is part of a larger financing package of EUR 400.6 million together with 3 other banks, representing one of the most significant green loans in the commercial real estate sector in Romania in 2025. 

On retail, main sustainable financing transactions were channeled towards co-financing/pre-financing loans under European funding programs, APIA loans and mortgages financing properties with a class A energy efficiency certificate, built before December 2020. 

Most notably in H1 2025, BRD launched an innovative product, for the first time on the Romanian market, a Sustainability-Linked Loan (SLL) specifically designed for SMEs.  

The deposit base increased by +8% YoY as of end of June 2025. Retail deposits, as BRD’s core, stable source of funding, rose by +3.7% YoY, building on higher inflows in current accounts from private individuals. Deposits from corporates reached a YoY growth of +15.8%, underpinned primarily by large corporate customers, increasing by +23.2% YoY as of June 2025 in volume of deposits outstanding.

BRD Asset Management provides access to over 164k clients to a variety of asset classes and strategies through the 12 investment funds managed. Assets under management marked a solid increase of +42.6% YoY, to RON 7.3 billion as of June 2025 end. Thus, BRD Asset Management further solidified its 1^st position on the UCITS market, reaching 25.11% market share as of June 2025 end.

Mixed setup of physical and remote presence tailored to customers’ needs

BRD ensures the availability of its products and services through a mix of on-site and remote presence. 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).

Digital interaction continues to rise, as reflected by the growing number of YouBRD mobile application users to 1.83 million (+18% YoY as of June 2025 end) and higher number of transactions done through the application (+25% YoY as of June 2025 end) totaling RON 28.7 billion during H1 2025 (+52% YoY). Enhancements to YouBRD e-banking application continued, with increased range of products available for authorised natural persons, increased transfer limits for both individuals and authorised natural persons and new range of savings products available (You Save and You Save Junior), as well as accessibility enhancements to cater for customers with disabilities. 

In one year since launch, the cashback loyalty program available in YouBRD, enjoys a higher adoption rate, with 825K clients enrolled in the program and ~RON 3 million granted in cashback to BRD customers.

Confirming a healthy financial profile

BRD Group’s net banking income totaled RON 2,167 million, up by +10.1% YoY during H1 2025, driven by growth of both interest and non-interest income. 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. 

Net fees and commissions remained on a strong growth path, up +17.9% YoY, benefiting from service fees increase given very dynamic cards, custody, transfers and lending activities, including also a one-off income item related to cards transaction fees. The overall dynamic was tempered by the negative impact of fees related to financial guarantee received given the SRT transaction with IFC, closed at end of March 2024.

Other banking income (+19.1% YoY) evolution reflects mainly H1 2024 base effect (one off limited provision booked in Q1 2024) and higher net income from associates, mostly related to dividend income.

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. Staff costs increased by +7.3% YoY, given higher base salaries and other benefits adjustments (loyalty premium, holiday vouchers, meal tickets) in a still inflationary context and highly competitive labor market, and severance costs related to ongoing transformation. 

Other costs (excluding tax on turnover and cumulated contribution to Deposit Guarantee Fund and Resolution Fund) increase was primarily linked to IT&C and consulting costs. The 2% tax on turnover due for the period January – June 2025, amounted to RON 65.7 million compared to RON 61.8 million in H1 2024, given higher revenues during the analysed period.

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.

All of the above translated into a good level of profitability, with BRD Group net result reaching RON 764 million (vs. RON 694 million in H1 2024), up by +10.2% YoY while ROE reached 16.1% in H1 2025 compared to 15.9% in H1 2024.

BRD standalone capital adequacy ratio is at comfortable level, 22% as of June 2025 end, excluding the impact of the new regulatory temporary treatments (valid until 1st of January 2026).

BRD Group financial results for the quarter ended June 30, 2025 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., 1^st district, Bucharest.

Notes:

¹ NPL ratio, NPL coverage ratio (acc to EBA), at Bank level

If not stated otherwise, all variations are vs. H1 2024 (for income statement related items) or June 2024 end (for balance sheet related items). 

BRD - Groupe Société Générale operates a network of 357 units. Total assets of the Bank at June 2025 end amounted to RON 90 billion.

BRD is part of the Société Générale Group, one of Europe's leading financial services groups and a major player in the economy for over 160 years. The group has more around 119,000 employees in 62 countries and more than 26 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  Facebook  LinkedIn                       Contact media: Traian Traicu_021 301 61 50_traian.traicu@brd.ro