Romanian bank BRD reports 'comfortable' EUR 110 mln profit in 2011

Romanian lender BRD Groupe Societe Generale posted a net profit of EUR 109.7 million in 2011, down 7 percent on the year before. The result is 'comfortable' given the loss in the whole banking system, according to the bank.

BRD saw its net cost of risk down 18 percent, but its banking revenues were also down to some EUR 761 million. BRD kept its operational expenses at the same level as in 2010, on one hand due to a 5 percent drop in staff, and on the other, to an expense optimization program. The drop in the bank's revenues was caused by overall lower economic activity, which led to a decrease in the volume of transactions in foreign currencies, and by a higher contribution to the Fund for Guaranteeing Deposits. The drop in interest rates also had its effect on the bank's net interest margin, while its commissions stayed at similar levels. BRD recorded 12.2 percent non-performing loans out of its loans portfolio at the end of 2011, below the market average of 14.1 percent, according to its data. The bank's deposits reached EUR 7.1 billion, while loans to customers valued EUR 7.9 billion. BRD had 937 bank units at the end of last year and 8,245 employees, down from 8,600 at the end of 2010. The bank, with EUR 11.1 billion in assets at the end of 2011, is majority owned by French Groupe Societe Generale. editor@romania-insider.com