Romanian lender BRD-Groupe Societe Generale’s profit up 58% in first half of the year

BRD-Groupe Societe Generale, the second largest bank in Romania in terms of total assets, ended the first half of 2013 with a net profit of some EUR 14 million (RON 62 million), up 58 percent against the same period of 2012. BRD’s net banking income declined 5 percent compared to the first half last year, mainly due to the decrease in the net interest margin, while the net cost of risk had a year-on-year decrease of 7.8 percent, according to the bank. At the end of the first half of 2013, the bank’s deposits were up 0.9 percent against June 30, 2012. “Consequently the net loans to deposits ratio continued to improve and stands at a level of 91.4%, lower by 6.2 points against June 30, 2012,” reads a statement from BRD. Cost optimization efforts triggered an 8.9 percent reduction in operational expenses, while the cost/income ratio stands at 45 percent, improved by 1.9 percentage points against first half of 2012. BRD is part of Groupe Societe Generale group, which has 154,000 employees based in 76 countries and 32 million clients throughout the world. Irina Popescu, irina.popescu@romania-insider.com