BRD SocGen reports 21% ROE as profit surges by 21% y/y in Jan-Sept

Romania’s third-largest bank by assets, BRD SocGen, reported its net profit increased by 20.8 % y/y to RON 1.22 billion in January-September, backed by robust corporate lending, leading to an annualised return on equity (ROE) ratio of 20.9% up from 16.7% in the same period last year.

The bank’s market capitalisation rose by 4% upon the release of January-September financials to RON 12.2 billion (EUR 2.5 billion), Ziarul Financiar reported.

BRD reported a 10% y/y rise in its stock of loans (leasing receivables included), sustained to a larger extent by robust lending activity in the corporate segment, while the dynamic in the retail segment was solid but within a market posting a very limited growth, reflecting the impact of tightening financial conditions, higher interest rates and rising uncertainties on perspectives.

Financing of corporates continued to show a strong dynamic, with the stock of loans surging at a double-digit pace of 20.0% y/y, while the net retail loans were up by only 4.1% y/y.

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