Societe Generale’s Romanian lender BRD ups profit 2.8 times in first quarter

Romanian lender BRD, owned by French Societe Generale, posted a 2.8 times higher year-on-year net profit in the first quarter of this year, to some EUR 8.3 million, as the cost of risk lowered. The bank’s loans to individuals were up 1.3 percent year-on-year, to some EUR 3.8 billion, whereas lending for the whole market was down 1.1 percent, according to BRD. During this period, mortgage loans were up 16.4 percent, thanks to the First House program. Lending for corporations however was down 8.8 percent compared to March 2013, to a level of loans of EUR 3.6 million. There was low demand for loans from companies, but BRD expects a higher economic increase in the coming months, which should counter balance for the first quarter. Deposits were up 6.9 percent compared to March 2013. BRD saw its non-performing loans (according to IFRS) comprise almost a quarter of total loans, while its provision coverage of non-performing loans according to IFRS improved, to 70 percent, up from 68.9 percent in March 2013. editor@romania-insider.com