Romanian lender BRD posts lower than expected profits for first three quarters

BRD bank has reported lower than expected profits for the first nine months of 2012. Controlled by French banking group Société Générale, BRD is one of the largest lenders on the Romanian market and its net profit was just EUR 2.26 million, or RON 10 million, well below expectations. According to a Reuters news agency poll, profits of around EUR 3.38 million, or RON 15 million, were expected.

The bank is now presenting results under new International Financial Reporting Standards. Under the Romanian financial reporting norms of the time, BRD posted profits of around EUR 90 million (RON 382 million) in the first nine months of 2011. In September, Société Générale CEO and Chairman Frédéric Oudéa said in an interview with the Financial Times that the Romanian subsidiary, along with others, was under performing and that the bank would be aiming for higher profits in 2013. BRD Groupe Societe Generale posted a net profit of EUR 109.7 million in 2011, down 7 percent on the year before. The result was ‘comfortable’ given the loss in the whole banking system, according to the bank. editor@romainia-insider.com