Profit of Romanian SocGen subsidiary BRD up 51% in H1
Romania's third bank by assets, BRD - Groupe Societe Generale (BRD), reported its consolidated net profit rose by 51% year-on-year (YoY) to almost RON 626 mln (EUR 127 mln) for the first six months of this year.
The rise was driven by solid commercial activity and the net release related to the cost of risk, the bank explains in a note to investors.
Regarding the cost of risk, BRD registered a net reversal of RON 39 mln (counted as revenues) in the first half of 2021, compared to an expense of RON 225 mln (counted as expenditures) in the same period last year.
This alone accounts for a positive RON 274 mln impact on the bank's gross results and fully explains the increase in its net profit.
"The net reversal of forecasts reflects the cumulative effect of the economic recovery and consistent recoveries from non-performing portfolios," the credit institution said. Francois Bloch, General Manager of BRD - Groupe Societe Generale, described a buoyant economic outlook.
"Romania's economy has again performed above expectations, with GDP already returning to the pre-Covid-19 pandemic in the first quarter of 2021. The health situation is under control, vaccination is progressing, and authorities are gradually lifting restrictions, despite concerns about a fourth wave of the pandemic. In the first half of the year, in this context of better business conditions and perception, although still marked by uncertainty, our work accelerated," he said.