BRD posts net profit of RON 1,337 million in Romania


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BRD Groupe Société Générale  has posted a net profit of RON 1,337 million, ROE 16% in 2022.

“2022 was a very particular year, with the unfolding of dramatic geopolitical evolutions since the beginning of the war in Ukraine. In conjunction with already elevated inflationary pressures, these evolutions have made their mark on the global economic environment. The business environment in Romania has been fairly well protected thanks to the actions of European and national authorities and he resilience of companies, which indicates that the economic system has reached a rather advanced degree of maturity.
In this context, BRD remained a truly committed, trustworthy and effective partner of Romania’s economy and of its customers. We granted almost RON 7.5 billion new loans to individuals, and we had an excellent dynamic on lending to corporates with our loan portfolio growth of 26% versus 2021 end, underpinned also by the active participation in IMM Invest program. In addition, our strong commitment in supporting sustainability transitions continued to firmly materialize, with almost RON 1.1 billion sustainable financing transactions concluded in 2022.

Besides this, we also continue our relentless efforts to enhance our customers’ digital journey. In 2022 we have launched instant payments and 100% online credit card issuance. We are proud that our mobile app, YouBRD has already surpassed the significant milestone of 1 million users. All the above translated into a good financial performance, despite significant inflationary pressures. BRD confirms its solidity and determination to continue to responsibly fulfil its mission as a leading bank in Romania.“ said François Bloch, CEO of BRD Groupe Société Générale.

BRD Group net loans, including leasing receivables, recorded a doubledigit growth (+10.4% compared to 2021 end).
On the retail side, BRD marked a record level of new housing loans production and the second best year for new consumer loans, with almost RON 7.5 billion new loans being granted to individuals in 2022.

Corporate financing delivered an impressive result (+25.8% YoY) building on an outstanding performance on SME segment (+43% YoY) and a notable increase of loans granted to large companies (+18.7% YoY), while leasing activity also printed high (+15.1% YoY). BRD continued to be an active participant in the IMM INVEST program, offering support to over 2,000 eligible SMEs, the total value of loans approved under this program reaching RON 2 billion in 2022, +69% compared to 2021.

2022 results reconfirmed that BRD is highly committed to finance the sustainability transitions, by integrating the ESG principles into its lending activity. The value of new sustainable finance transactions in 2022 reached EUR 215 million, marking important progress towards the achievement of the EUR 1 billion strategic objective of sustainable financing by the end of 2025.

Deposit base was further consolidated, with corporate deposits up by +17.2% YoY, being driven by extensive collection from large corporate customers. Retail deposits advanced (+3.1% YoY) in a tight liquidity and competitive context.

BRD Group full year revenues reached RON 3,459 million, higher by +11.7% compared to 2021. The macroeconomic environment was marked by strong inflation pressures, an accelerated upward trend of market interest rates and increased volatility. Given the very dynamic commercial activity and the effect  of interest rates context, net interest income advanced by +13.7% on a yearly basis, being tempered by
he significantly increased remuneration of customers’ deposits. Net fees and commissions were up +1.4% compared to 2021 amid increased volume of transactions and dynamic health insurance production, counterbracing the lower revenues from asset management activity and ebanking commissions given the migration of retail customers to the free of charge mobile application, YouBRD.

Inflation pressure on operating expenses was visible throughout the year, but costs’ increase was limited by a maintained rigorous spending discipline. Overall operating expenses increased by +8.3% compared to 2021, if excluding the higher contribution to Guarantee and Resolution Funds. Staff expenses (+8.5% y/y compared to 2021) were influenced largely by the price effect of wage increase and other benefits adjustments within the collective labor agreement (especially meal tickets) and exceptional inflation premium, supporting our employees in managing the higher cost of living. The evolution of other costs notably mirrors higher expenses on external services, elevated energy prices and increased IT&C related expenses supporting the visible digitization of our customers journey.
Gross operating income
reached RON 1,715 million (+14.3% compared to 2021) and cost to income ratio improved on positive jaws effect (50.4% in 2022 vs 51.6% in 2021).
asset quality remains solid, with NPL ratio reaching 2.5% in December 2022 (down from 3.1% in December 2021) and end of year NPL coverage rate standing at a comfortable 77%. Full year net cost of risk registered RON 95 million charge (vs. RON 146 million release in 2021) linked to the macroeconomic context, while the nonperforming portfolio showed sustained recoveries and a low level
of new defaults.

Given all the above, BRD Group net profit amounted RON 1,337 million compared to RON 1,319 million in 2021. ROE reached 15.9% (13.4% in 2021).

BRD capital position is solid, with total capital ratio of 20.9% (individual level) at December 2022 (including 9 months 2022 net profit and the full recognition of other comprehensive income reserve in own funds.

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