BRD Groupe Societe Generale, the second-biggest lender in Romania by assets, announced a 64% increase in net profit, in the first half of this year compared to the same period of 2015, to EUR 85 million.

The higher profit was due to an increase in operating revenues on the main business lines and by one off gains from the sale of the bank’s stake in VISA Europe, according to the half-yearly report.

The bank’s net operating profit went up by 35%, to EUR 159 million, while the risk costs increased by 6%, to EUR 60 million.

BRD Group’s net banking income amounted to EUR 319 million, up by about 13% compared to the first half of 2015 thanks to increases across all the main categories.

“Net interest income was higher by 6.8% thanks to positive volume, structure and interest rate effects. Net fees and commissions were up by 3.4% due to revenue growth on card activity, internet and mobile banking, and insurance. Other banking income included non-recurring items of EUR 27 million in connection to the sale of the VISA Europe participation and gains on the sale of Government bonds and fund units. Excluding these elements, net banking income increased by 5.1%,” reads BRD’s statement.

BRD Group’s net loan outstanding expanded by 1.7% as compared to June 30, 2015 and by 3.1% versus December 31, 2015 predominantly driven by housing loans and unsecured consumer loans on the retail segment, and ongoing growth on the large corporate clients segment. The bank’s net loan portfolio stood at close to EUR 6.1 billion at the end of June.

The deposit base also increased by 6.1% year-on-year, reaching EUR 8.95 billion at the end of June. The loans to deposits ratio thus stood at some 70%.

Non-performing loans ratio declined following write-off transactions, to 14.4% from 18.6% as of June 30, 2015.

“Thanks to the successful roll out of its universal bank development strategy, the bank delivered a solid operational and financial performance in the first half of the year. Individual customers and large clients segments provided further confirmation of their growth potential, and in spite of the low interest rates, net banking revenues continued to progress markedly, allowing us to look with confidence to the future”, said Philippe Lhotte, BRD CEO.

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editor@romania-insider.com