Romania’s second-biggest lender posts sevenfold profit increase

BRD Groupe Societe Generale, the second biggest bank in Romania by assets according to 2014 data, posted a consolidated net profit of EUR 105 million 6.9 times higher than the 2014 result. The profit increase was mainly due to lower risk costs related to non-performing loans, which went down by 46% year-on-year, to EUR 148 million. The operational profit went down by 6.6%, to EUR 272 million, as the 2.3% decrease in operational costs could not fully compensate for the 4.4% drop in net banking income. The group’s net loan portfolio saw a slight decline (-0.6%) compared to December 2014, reaching EUR 5.94 billion, as the total loan portfolio of Romanian banks increased by 3% last year. The group’s deposit base increased by some 14% to over EUR 9.1 billion and supported the 8.9% growth in the group’s total assets, which reached EUR 11.1 billion at the end of last year. This year, BRD plans to focus on organic growth, by taking advantage of the higher demand for loans and its wide deposit base. The group’s strategy doesn’t include buying other banks, according to Philippe Lhotte, BRD’s CEO. editor@romania-insider.com