BRD, the Romanian subsidiary of the French group Société Générale and the third-biggest bank in Romania by assets, said on May 6 that its net profit contracted by 6.5% year-on-year to RON 218 mln (EUR 44.5 mln) in the first quarter of 2021.

"BRD achieved in Q1 a performance that demonstrates the adaptability of its business model and the adequacy of the measures taken in response to the crisis. Net bank income was resilient despite a significant drop in interest rates, while costs were strictly controlled without affecting strategic investment. Based on strong foundations, BRD is fully able to continue to support both its customers and the recovery of the Romanian economy," said BRD CEO Francois Bloch.

BRD's net banking income remained virtually steady at RON 720 mln (EUR 147 mln).

Net interest income decreased by 7.4%, hurt by low market rates in the first quarter of the year (the average 3-month ROBOR rate in the first quarter of 2021 being 1.65% compared to 3.03% in the first quarter of 2020).

The pressure on net interest income was offset by better performance of net commission income and other bank income, the bank explained in a statement.

The entire BRD financial group reported its net profit contracted by 7.6% to RON 222 mln (EUR 45.3 mln), while its net income was RON 759 mln, a mere 1.3% down year-on-year.

BRD's shares went down 1.85% on the Bucharest Stock Exchange after the bank published the Q1 report. Year-to-date, BRD's shares are up 7%, compared to a 17% increase for the BET index.

andrei@romania-insider.com

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