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2009: Solid Results in the Context of an Economic Environment Strongly Affected by Recession

15 Feb 2010

Groupe Société Générale obtained in 2009 a consolidated net profit of RON 812 million (EUR 192 million), thus proving resistance to the effects of the crisis. The gross operating profit increased by 13% as against 2008.

In 2009, BRD - Groupe Société Générale was efficient in conducting all its business lines, despite a particularly difficult economic environment.

The main financial indicators of BRD-Groupe Société Générale as at 31/12/2009 are*:

Net banking income: RON 3.613 billion (EUR 853 million),up by 13% as compared to the end of December 2008;
Gross operating profit: RON 2.084 billion (EUR 492 million), up by 13% as against 31/12/2008;
Consolidated net profit: RON 812 million (EUR 192 million), down by 29% as against December 31, 2008;
Return on equity (ROE) as at end 2009: 19%.

NB: These figures do not include the impact of BRD's revaluation of its fixed assets, which is about to be finished. We estimate that the effect of such revaluation on the net profit, at this time, is a decrease by RON 15 million.

The incomes from fees increased by 7%, at a slower pace than in 2008, given the decrease in the volume of operations, while the incomes from the interest margin and the market operations went up by 19%, and 13%, respectively.

The bank obtained such results by continuing to apply measures aimed at counteracting the effects of the financial crisis, and which consisted in the strict control of the general expenses and in the strengthening of the risk control.

The net risk cost increased considerably in the current economic conditions, reaching 316 bp. The rate of bad loans is lower than the average of the banking system, as shown by the statistics of the National Bank of Romania.

The net profit of the Group, which also includes the results of the subsidiaries BRD Sogelease, BRD Finance and BRD Securities, is of RON 812 million (EUR 192 million). As for the net profit of the bank, it amounts to RON 792 million (EUR 187 million).

In the context of a significantly lower demand, the total loans extended by the bank at the end of 2009 amounted to over RON 34.9 billion, 48% of which represented loans to private customers. The customers' deposits exceeded RON 29.2 billion as at end 2009, up by 2% as against December 31, 2008.

The customer base remains robust - approximately 2.5 million customers - the inactive ones not included, considering the slower pace of attracting new customers. The bank network counts 930 units, the same as at the end of 2008. The operating ratio (general expenses / net banking income) maintains its competitive level, of 42%. The number of employees remained constant in 2009 - reaching almost 9,100 in the entire BRD Group.

"2009 was a difficult exam, with uncertainties regarding the macroeconomic developments. In 2009, the banks were subject to multiple pressures related to the increase in the costs of risks, and especially to ensuring the profitability of their operations given the extremely low demand for banking products and services. To us, it was an exercise of flexibility and adjustment to the effects of the crisis, which we completed successfully", said Guy Poupet, Chairman - CEO of BRD.

In 2009, BRD received two important awards from the international financial publications Euromoney and Global Finance, which designated it "Bank of the Year in Romania".

For more information on the annual results of BRD, please refer to the website of the bank, www.brd.ro, under the Shareholders/Investors section.

*The evolutions are calculated in nominal terms.
The 2009/2008 comparison excludes from the 2008 results the net gain brought by the Asiban transaction.
The figures have been calculated in compliance with the local accounting standards and have not been audited.

BRD-Groupe Société Générale is the second bank in Romania in terms of total assets and has the second market capitalisation on the Bucharest Stock Exchange.

BRD is part of the Société Générale Group, one of the largest groups of financial services in the Euro Area. The group has more than 160,000 employees worldwide, on three key business lines:

Retail banking and financial services
Global Investment Management & Services
Corporate & Investment Banking

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2009: Solid Results in the Context of an Economic Environment Strongly Affected by Recession