Romanian lender BRD sees 25% higher net profit in the first nine months

Lender BRD, the Romanian subsidiary of French group Societe Generale, increased its net profit by 25% in the first nine months of 2021 compared with the same period of last year to RON 920 million (EUR 186 mln).

The net result was supported by the dynamic commercial activity and net release in cost of risk.

"The Romanian economy showed a very dynamic rebound in the second quarter of 2021 amid better business conditions and sentiment, laying the foundation for a solid 2021 GDP growth. Still, risks arise from the pandemic resurgence and the turbulence in the energy market. On the other hand, the approval of the National Recovery and Resilience Plan in September by the European Commission may be one of Romania's great chances to boost its growth, along with other national development programs," said BRD CEO Francois Bloch.

The group's outstanding loans portfolio, including leasing, increased by almost 8% year on year, sustained by dynamic all over the board lending activity.

"The retail loan production was exceptional, with growth printing at almost 50% year on year and above 20% versus 2019. Corporate lending strong increase (+19%) was fueled by a sharp growth both on the SME and large companies segments," Bloch explained.

The non-performing loans (NPL) ratio went down to 3.2% in September 2021, down from 3.4% in September 2020.

BRD's shares have gained 51% on the Bucharest Stock Exchange in the last 12 months, reflecting the group's positive financial evolution.

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