The group’s net profit, including the results obtained by BRD Sogelease and BRD Finance branches, totals RON 533 M (EUR 127 M). The bank’s net profit totals RON 501 M (EUR 119 M).
BRD-Groupe Societe Generale’s net revenue grew to RON 3,687 M last year, 2 per cent above the 2009 level. On December 31, 2010, the gross operational profit registered a slight 8 per cent growth compared to the level reported on the same day in 2009, reaching RON 2,245 M. The group’s net profit, which includes the results obtained by BRD Sogelease and BRD Finance branches, totals RON 533 M (EUR 127 M), while the bank’s net profit totals RON 501 M (EUR 119 M). In Q1 of last year BRD registered the highest profit of 2010 (RON 200 M). In the two quarters that followed the profit stood at RON 167 M and RON 107 M respectively.
“Against the backdrop of a disappointing year for the Romanian economy, the bank’s results reveal BRD’s capacity to resist and its solidity. We tackle 2011 with confidence because we rely both on our strength and on the parent bank’s support, the scenario we are taking into consideration including a moderate improvement in the economic context. We consider that 2011 will nevertheless remain a difficult year, especially in what concerns the high level of the net cost of risk. On the other hand, we remain confident that on the long term Romania should resume sustained and durable economic growth,” Guy Poupet (photo), BRD’s Chairman and CEO, told a press conference.
Winner of Nine O’Clock’s “Banker of the Year 2010” award, Guy Poupet pointed out that overall expenditures have been strictly monitored, a fact that has led to a 6 per cent drop compared to the year before, and that the clients’ deposits rose by 2 per cent to RON 29.8 bln compared to 2009. At the same time, the total volume of offered loans stood at RON 34.5 bln in 2010, down by just 1 per cent compared to the end of 2009.
RATE OF PERFORMING LOANS – 9.13 PC AT A SYSTEM AVERAGE OF 12.85 PC
The net cost of risk in BRD’s case grew by 41 per cent to RON 1.598 bln last year compared to the 2009 value of RON 1.134 bln. “The net cost of risk has experienced an important rise because of the current economic conditions and because of some technical elements such as the re-evaluation of collaterals. According to the National Bank of Romania statistics, the level of BRD’s non-performing loans is below the baking system’s average. The operating coefficient (general expenditures/net revenues) improved compared to the one reported in 2009, dropping by 3 per cent to 39 per cent,” the communiqué adds.
Poupet pointed out that BRD’s rate of performing loans stands at 9.13 per cent, while the banking system’s average is 12.85 per cent. The structure of loans ordered by category of clients remained unchanged compared to 2009, 48 per cent of total loans being private, while 52 per cent were corporate. “The evolution of the loans’ volume was influenced by the extremely low demand, especially on the private loans’ market, despite the fact that the demand was stimulated through low interest rates for consumer loans. The large customers, private corporations, public entities and local communities represented the main engines of crediting in 2010,” BRD’s Chairman and CEO pointed out. According to the balance sheet, net revenues from commissions dropped by 4 per cent given the drop in the volume of operations, while net revenues from interest grew by 13 per cent.
The provisions made by the banks operating in Romania grew by 57 per cent to RON 23.5 bln last year, while loans struck out of the balance sheet but still monitored totaled RON 2.43 bln, similar to the level reported in 2009. Last year BRD’s assets grew by 2.47 per cent from RON 46.346 bln in 2009 to RON 47.494 bln. At consolidated level the group’s assets grew last year by 3.53 per cent to RON 341.8 bln against the backdrop of growth in transactions and investments in bonds, whose balance grew by 44 per cent to RON 53.1 bln. At the same time, the bank’s investments in 2010 stood at a level of RON 130 M, almost all going in the IT domain. According to the bank, its customer base remained solid, totaling approximately 2.5 million clients. Likewise, the number of employees registered a slight growth, being close to 9,200 at group level.
The bank’s divisions registered satisfactory results. BRD Finance, the branch specialized in offering consumer loans has reported profit and, at the same time, a more visible drop in the cost of risk. At the same time, BRD Sogelease, specializing in financial leasing, maintained a balanced portfolio and offered loans worth RON 845 M. The ALD Automotive full service operational leasing company surpassed the level of 6,000 vehicles and managed to win a market share of 19 per cent in Romania. The figures are calculated in line with the local accounting standards and are not audited.