For the first nine months of 2016, BRD Group net result stood at RON 606 million, up by 67.9 percent compared to the same period of last year, a press release informs on Thursday.
The net profit increase remained significant after excluding non-recurring income (up by 45.4 percent against the first nine months of 2015). Return on equity reached 12.5 percent (10.3 percent excluding non –recurring items) compared to 8.2 percent in the first nine months of 2015.
At the same time, the net banking income reached RON 2,111 million, up by 9.6 percent compared to the same period of 2015.
“Net interest income increased by 5.3 percent thanks to favorable volume and structure effects. The advance of 5 in percent net fees and commissions was supported by card activity, internet and mobile banking subscriptions and insurance,” the release reads.
Other banking income booked in the first nine months of this year was up by 39.2 percent versus same period of 2015, and includes the gains from VISA transaction and sales of Government bonds and investment fund units. Excluding non-recurring elements, net banking income increased by 4.2 percent, on a yearly basis.
The ratio of non-performing loans further declined as of September 30, 2016 to 10.8 percent from 15.3 percent as of end-September, 2015 due to write-off operations and sales of portfolios. The coverage of non-performing loans was increased from 69.8 percent at September 30, 2015 to 74.7 percent y-o-y. Net cost of risk amounted to RON 362 million as of September 30, 2016 (-20.3 percent y-o-y) confirming further the downward trend.
Individuals loan growth (+5.9 percent versus September 30, 2015) was driven to a higher extent by housing loans (+15.5 percent). On the other hand, consumer loans remained in negative territory (-2.6 percent versus September 30, 2015) as growth of RON denominated loans (+9.3 percent) didn’t offset the drop of FX component (-20.5 percent) on an annual basis. Loans to corporate, despite the persistently low interest rate environment, still register negative dynamic (-3.2 percent year on year) notably influenced by portfolio clean-up operations. Customer deposits maintained solid growth, on both segments: total deposits rose by 10.5 percent against September 30, 2015.
The net loans outstanding amount of BRD Group as of September 30, 2016 reached RON 28.4 billion (+2.4 percent against September 30, 2015 and +3.8 percent against December 31, 2015) thanks to the increase registered on individuals and large corporate segments, the release also shows.
Net loans to individuals were up by 6.5 percent compared to September 30, 2015 driven by a particularly strong growth pace on unsecured consumer loans and housing loans.