BRD, French group Societe Generale’s Romanian subsidiary, more than doubled its net profit in the first half of the year, to EUR 61 million, as its net risk costs registered a significant decline.

The bank’s net revenues went down by 5% compared to the first six months of 2014, to EUR 276 million, as the net interest margin shrunk due to the low interest environment and net bank fees were also lower. The lender also reduced its operational costs by 1.5%, to EUR 142 million.

However, the bank’s profit increase came mainly from the decline in net risk costs, which almost halved compared to the first six months of 2014, to EUR 60 million.

BRD improved its risk profile, as it reduced its non-performing loans (NPL) ratio from 23.4% in June 2014 to 18.8% as of June 30, 2015, as a result of write-offs and NPL sale transactions.

BRD Group’s outstanding net loans reached EUR 6.03 billion, down by 2.5% year-on-year due to the contraction of the SME loan portfolio, but up by 1.1% versus December 31, 2014 thanks to further expansion of the portfolio of credits to individuals and large corporate clients.

The group’s total assets went up to EUR 10.8 billion, as of June 30, 2015, and the shareholders equity reached EUR 1.32 billion.

BRD’s improved results also reflected in its share price evolution on the Bucharest Stock Exchange (BVB). The BRD shares went up by 29% compared to December 2014. The bank’s current market capitalization is close to EUR 1.8 billion (as of August 5, 2015).

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editor@romania-insider.com