Romanian lender BRD Groupe Societe Generale, the second biggest local banking group by assets, recorded a consolidated net profit of some EUR 86 million in the first nine months of this year, some ten times higher compared to the result recorded in the same period of last year.

The group’s operational result was slightly lower compared to last year, at some EUR 420 million, while the net risk costs related to non-performing loans (NPLs) more than halved, at EUR 110 million.

The group’s net loan book went up by 1.3% compared to December 2014, reaching EUR 6.05 billion, as of September 30, 2015.

“The 3.5% year-to-date expansion of the retail portfolio was underpinned by housing loans. Individuals’ loan production during January – September 2015 reached RON 3.7 bn, up by 17% against the corresponding period of last year, partially as a result of the Prima Casa program which enjoys buoyant growth,” reads a BRD statement.

“BRD Group’s results for the first 9 months of 2015 were marked by a pick-up in credit activity, on individuals and large corporate segments, sharp downward adjustment of risk costs and proactive cost management. The gradual recovery of demand for loans provides encouraging signs for a further sequential improvement of revenues”, said Philippe Lhotte, BRD CEO.

BRD managed to widen its deposit base by 7.1% compared to December 2014, to EUR 6.84 billion. The ratio of net loans to deposits thus reached 70%.

Andrei Chirileasa, andrei@romania-insider.com