The net profit of BRD (BVB: BRD), the fourth bank on the Romanian market by assets, contracted by 10% y/y to RON 675mn (EUR 136mn), although both lending and income increased.

At the level of the entire BRD Group, the net profit dropped by 9.6% y/y to RON 694mn, resulting in an annualized return on average equity of 16%. 

BRD’s market capitalization is RON 15.3bn (EUR 3bn) after the price of its shares rose by 49% y/y. The yield generated by the dividend paid put pf the 2023 profit was 5.4%. 

At the level of the entire BRD Group, total revenues increased by 5.7% y/y up to almost RON 2bn (EUR 400mn), while the operating expenses increased faster, by 8.9% y/y. 

The bank blames the higher expenses on the new turnover tax, personnel costs, and the basic effect related to the reduction of the cumulative contribution to the deposit guarantee funds in Q2/2023, according to the explanations sent by the bank.
The net banking income of BRD (bank alone) advanced by 5% y/y to approximately RON 1.9bn, driven by the 8% y/y advance in the net interest income and 6% y/y rise in the net receipts from commissions.

BRD Group net loans outstanding, including leasing receivables, reached RON 45bn (EUR 9bn) at the end of June 2024, reflecting a double-digit increase of +14% y/y, outperforming the market, mainly driven by excellent dynamic activity in the corporate segment, while retail lending growth continued to accelerate.

(Photo: Dreamstime)

iulian@romania-insider.com