BRD ended the first three months of 2018 with net profit of RON 414 million, up by 25.6 percent year-on-year on healthy revenue generation, quasi stable operating expenses and positive cost of risk, a press release informs.
“The first quarter of 2018 was very dynamic as shown by the continuous increase in loans, deposits and transaction volumes which, together with the favorable interest rate context, translated into a double-digit increase in net banking income. Looking forward, we will continue to improve customer experience and satisfaction by further investing in digitalization and through ongoing developments of our business model”, said Francois Bloch, CEO of BRD Groupe Société Générale.
The number of active customers increased by +37,000 YoY, of which individuals +33,000 and small business customers +4,000. Individual customers’ equipment rate (the average number of products per active customers) further increased to 4.18 from 4.09 at March 2017 end. The stock of internet and mobile banking contracts for individual customers reached around 1.44 million, +19 percent YoY. The number of MyBRD Mobile subscribers rose by +43 percent.
Net loans amounted to RON 30.4 billion, +5.0 percent compared to March 2017 end, thanks to more intense credit activity on individuals and large corporate client segments. Individuals’ net loan outstanding expanded by +7.8 percent YoY pushed by strong loan production, which rose by +9 percent YoY, to RON 1.4 billion. In this context, BRD maintained its leadership position on credits to households, with a market share of 16.9 percent at March 2018 end. The non-retail segment was resilient, with robust performance on large corporate clients (+5.9 percent YoY).
Deposits increased by +6.0 percent YoY, pushed up by both retail and non-retail savings. The rise in retail deposits (+7.4 percent) stemmed mainly from increased inflows in individuals’ current accounts (+29 percent). The increase in non-retail savings (+3.6 percent) was due to increases on both SMEs and corporate clients. The ratio of net loans to deposits was 68.6% at March 2018 end (-0.6 pts versus March 2017 end).
Net banking income amounted to RON 724 million (+11.4 percent YoY) increasing across all the main lines. Staff costs were higher by +11.3 percent, as a result of compensation package adjustments, in line with market conditions, in a tight labor market context.