BRD net profit falls to EUR 19 mln in Q1 on soaring risk cost

Net profit of BRD-Groupe Societe Generale decreased by 39 percent y/y to RON 83 million (EUR 19 million) on Q1 2012, impacted by the net risk cost which rose by 58 percent y/y to RON 337 million (EUR 77 million).

Net banking income rose by 6 percent y/y to RON 767 million (EUR 176 million), due to resilient commission income and increased net interest income. Expenses fell by 2 percent, while the exploitation coefficient improved to 43.7 percent in Q1.

“The results of the first quarter reflect an improvement in the commercial activity of the bank, especially on savings. This lead to an improvement of the loan/deposit ratio,” says Guy Poupet, president-general director of BRD-Groupe Societe Generale.

BRD’s gross loan volume rose by 5 percent y/y to RON 34.3 billion (EUR 7.9 billion), driven by retail lending, while deposits gained 8.1 percent y/y to RON 31.6 million (EUR 7.2 billion). Thus, the loan to deposit ratio decreased 6 percent y/y to 99.7 percent in Q1.

Ovidiu Posirca

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