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BRD H1 Results: Net profit of RON 62 million, up 58% against H1 2012, further improvement of C/I ratio and net cost of risk

31 Jul 2013

The main financial ratios of BRD-Groupe Société Générale as at June 30, 2013 at stand alone level, according to the International Financial Reporting Standards (IFRS):

- Net banking Income of RON 1,360 million, down 5% against H1 2012;
- Increased operational efficiency: -8.9% in operational expenses against H1 2012
- Improved C/I ratio (45.0%) compared to H1 2012 (46.9%);
- Net Cost of Risk: -7.8% against H1 2012;
- Net profit is of RON 62 million, up 58% against H1 2012

At the banking system level, the first half of 2013 was characterized by a sluggish credit activity.

Consequently, BRD operated in an environment marked by weak demand for loans from both individual and corporate customers, which limited their investments.

The total amount of gross loans granted to clients is of 34.85 RON billion, lower by 1.0% compared to June 30, 2012. Progression was noticed in retail loans (+3.2% vs -1.4% at market level, at end of May, 2013). This positive evolution in loans to individuals has been triggered by growth in housing loans portfolio (especially loans granted in the framework of the “Prima Casa” program), up 31.7% against June 30, 2012. Loans granted to companies (RON 17.59 bn) saw a decrease against June 2012 (-4.8%).

Deposits were, at end of H1 2013, up 0.9% against June 30, 2012, reaching 33.26 RON billion, pushed up by foreign currency deposits.

Consequently the net loans to deposits ratio continued to improve and stands at a level of 91.4%, lower by 6.2 points against June 30, 2012.

The Net Banking Income stands at 1,360 RON million, down by 5% compared to same period last year, mainly due to the decrease in the net interest margin (-8.7%, influenced by negative volume and structure effects).

Cost optimization efforts led to significant reduction in operational expenses: - 8.9 % against the same period of last year. The cost/income ratio stands at 45%, improved by 1.9 points against H1 2012.

The Net Cost of Risk for the 1st half of 2013 saw a positive evolution against June 30, 2012, with a decrease of 7.8%.

The net profit at the end of the first semester was of RON 62 million, up 58% against H1 2012.

The H1 2013 financial statements are available to the public and investors on the website of the bank, Financial Results page. 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 Boulevard, 1st district, Bucharest.

BRD-Groupe Société Générale is the second bank in Romania in terms of total assets. BRD is part of Société Générale Group, one of the largest European financial services groups. The group has 154,000 employees based in 76 countries and 32 million clients throughout the world, in three core businesses:
- Retail banking in France;
- International retail banking;
- Corporate & Investment Banking

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BRD H1 Results: Net profit of RON 62 million, up 58% against H1 2012, further improvement of C/I ratio and net cost of risk