BRD profits drop by almost a quarter to RON 282 mln, on H1, 2010

Newsroom 04/08/2011 | 08:16

BRD registered a 23.3 percent decrease in profits, from RON 367 million in the first half of 2010, to RON 282 million in the first half of 2011. Net banking income decreased by 9 percent from RON 1,750 million in the first half of 2010 to 1,600 million in the first half of 2011. Net commission income remained constant at around RON 620 million. While the gross operating result decreased year on year from RON 1,067 million to RON 914 million in the first half of 2011, which is a 14.3 percent decline, risk provisions were reduced from RON 628 million in the first half of 2010 by 8 percent, to RON 581 million. The cost/income ratio went up to 42.8 percent from 39 percent for the same period in 2010. Return on equity decreased from 16 percent to 11 percent. In the first six months of 2011, BRD invested approximately EUR 12 million in improving the IT infrastructure.

Decrease in customer and corporate loans and deposits

The number of active clients went down from 2.4 million in the first half of 2010, to 2.3 million.
Loans for customers decreased by 3 percent in value, from RON 16,555 million in the first half of 2010 to RON 16,052 million. Customer deposits decreased by 5 percent, from RON 14,404 million in the first half of 2010, to RON 14,710 million.
Corporate customers’ loans went down from RON 17,903 million in the first half of 2010, to RON 17,281 million. Deposits registered a 5 percent decrease, from RON 15,951 million in the first half of 2010, to RON 15,149 million.

BRD-Groupe Societe Generale is the second bank in Romania in terms of total assets, and it has the second market capitalization on the Bucharest Stock Exchange. BRD is part of the Societe Generale Groupe, one of the largest groups of financial services in the Euro Zone.

 

Ovidiu Posirca

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