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September 25, 2021

Prolonged recession results in net profit of RON 366.9 M in H1 for BRD

The net profit of the Romanian Development Bank – Groupe Société Générale (BRD) dropped by 13.7 per cent in the first semester, at RON 366.9 M (EUR 88.5 M), from RON 452.2 M in the same interval in 2009, and bank assets rose by 4.9 per cent, compared to the end of the preceding year, at RON 48.6 bln, a press release informs. The bank’s total assets were amounting to RON 46.3 bln, at the end of December 2009. The net cost of risk rose in the January to June interval by 53.9 per cent, at RON 628 M (EUR 151 M), compared to RON 408 M in the same interval of 2009. “The activity of the bank is affected by the prolonged recession, which is reflected, in the banking world, in a lower demand for banking products, namely, by a high level of the net cost of risk. (…) The profitability of the banking activity, as a whole, remained at a level higher than the banking system average, and operating yields – the rise in the banking net revenue – are a proof that the bank’s business model is a viable one, which works even in the context of a prolonged economic recession,” the president-general manager of BRD– Groupe Société Générale, Guy Poupet, stated, in the report. The bank reported a banking net revenue of RON 1.75 bln (EUR 422 M), 7 per cent higher than in the first six months of 2009.

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