Romania’s second-largest bank, BRD, controlled by France’s Societe Generale , posted a 2013 net loss of RON 385 million, it said on Wednesday. The brute loss doubled to RON 648 million on account of raising provisions, partly compensated by the income from deferred tax, which rose to RON 263 million in 2013, from around RON 47.2 million in the previous year. writes MEDIAFAX.
“Consolidation of covering non-performing loans with provisions led to the net result,” BRD said in a statement.
Net risk costs increased to RON 2.08 billion, from RON 1.94 billion at the end of 2012.
BRD said the net banking income was down 6.9% from the previous year, mostly affected by net interest margin decline. Outstanding gross loans to individuals reached RON 17.2 billion, while demand for corporate loans shrunk, triggering a 12.5% decline of gross volume to RON 16.3 billion.
The bank said deposits registered a significant increase (12.8%, versus 7.4% for the market), so that the net loans to deposits ratio improved to 76.8% at the end of 2013.
This is the second year in a row that BRD posts negative result. In 2012, the bank recorded a loss of 331 million lei, while in 2011 the bank recorded a RON 469 million net profit.