Romanian lender BRD wants back to profit this year, after two years of losses

Romanian lender BRD Groupe Societe Generale hopes to return to profit this year, on lower risk costs, after it ended the last two years with losses. In 2013, the bank recorded a loss of RON 385 million (some EUR 87 million), while in 2012, the loss was RON 331 million (around EUR 74 million). According to the budget of revenues and expenditures published on the bank’s website, BRD considers that the net risk cost will record an “expected normalization, after sustained efforts to significantly improve the level of provisioning”. The lender foresees a decrease in the net banking income this year, “mainly due to a still reduced activity of lending and unfavorable base effects”. BRD also expects a limited growth in interest margin and increasing commission income. The bank plans to continue the cost optimization measures this year. According to the document, BRD plans to maintain a good sized network, while continuing to perform pragmatic adjustments, to accelerate the transition to a complete relational banking model, to increase the number of customer advisers by resizing the staff, and continue expanding the chain agencies with extended program. On the retail lending sector, the bank intends, among others measures, to define and develop an action plan to prevent a reduction in the number of customers, to strengthen the position on the savings market, to continue to promote the real estate loans and to support the production of consumer loans through specific campaigns. On the corporate segment, BRD plans to resume lending growth, and develop a sectoral strategy according to market opportunities, mainly targeting energy, agriculture, infrastructure, large retailers and major exporters. BRD expects a 4 percent increase in net loans this year, to RON 28.9 billion, after in 2013 it recorded a year-on-year decrease of 11.8 percent. Also, the lender expects to grow the number of customers by 2.4 percent in 2014, to some 2.3 million. The budget of revenues and expenditures is to be discussed during the general meeting of shareholders scheduled for April 17, 2014. Irina Popescu, irina.popescu@romania-insider.com