The net profit of BRD Groupe Société Générale (BRD SocGen) increased by 1.4% YoY to RON 1.34 bln, despite double-digit growth of its operational revenues (+14.3% YoY) and stock of net loans 9+10.4% YoY) – but the return on equity (ROE) strengthened to 15.9% compared to 13.4% in 2021, according to the consolidated reports published under International Financial Reporting Standards (IFRS).

Corporate lending particularly boasted impressive results (+25.8% YoY) based on a special performance in the SME segment (+43% YoY) and a notable increase in loans granted to large companies (+18.7% YoY), while the leasing activity also registered a high level (+15.1%).

The group’s gross operating profit rose by 14.3% YoY (to RON 1.715 mln), but the net cost of risk recorded an expense of RON 95 mln, “influenced by the macroeconomic context,” compared to a positive impact of RON 146 mln in 2021.

However, the bank assures that the asset quality remains solid, with the ratio of non-performing loans (NPL) being 2.5% at the end of December 2022 (down from 3.1% in December 2021) and the level of coverage with provisions at the end of the year remaining comfortable: 77%.

The Board of Directors of BRD decided that the granting of dividends from the profit of 2022 will not be proposed for approval to the General Meeting of Shareholders, consistent with the prudential recommendations of the National Committee for Macroprudential Supervision and the National Bank of Romania.

iulian@romania-insider.com

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