Romanian lender BRD widens loss in 2013 on higher provisions

Romanian lender BRD, controlled by French Groupe Societe Generale, posted a net loss of around EUR 85.5 million in 2013, mainly due to the increase in its provisions for bad loans.

“2013 was a transition year for BRD, mainly dedicated to improving internal organization and risk management, as well as reinforcing our competitive advantages. […] In essence, 2013 was a useful year, and BRD came out stronger,” said Philippe Lhotte, president and general manager of BRD Groupe Societe Generale.

This was the second year in a row when BRD posted a loss. In 2012, that stood at EUR 74.6 million, also caused by an increase in provisions.

In 2013, the bank saw an overall decrease in lending across the entire Romanian market, down 4.2 percent, mainly because of the corporate segment. Meanwhile, BRD said it managed to increase loans to individuals by 1 percent, to some EUR 3.8 billion.

The bank’s statement about the financial results, here (in Romanian, in pdf).

editor@romania-insider.com

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