BRD’s net profit in Q1 has increased fourfold

BRD posted a very strong increase in net profit to RON 330 million in first quarter of 2017 (4.5x vs. Q1 2016) on positive net cost of risk, backed by improved net interest income and strict monitoring of operating expenses, a press release informs.

At the same time, the net interest income up 5.1 percent compared to Q1 2016, on volume growth and favourable structure shifts; fees and commissions revenues lower year on year, mainly on regulatory driven decrease of interchange fees and market pressure on transactional banking prices.

“BRD Group delivered a robust performance in the first quarter of 2017, with a strong net profit, a good commercial momentum on retail and large corporate segments, strict cost discipline and further improved risk profile. Looking ahead, we will continue to focus our attention and investments on our customer centric model, as well as on our digital offer, and we restate our commitment towards financing the Romanian economy and sustainably creating value for our shareholders”, Francois Bloch, BRD CEO said.

Operating expenses were 5.1 percent lower versus Q1 2016, driven by lower Bank Deposit Guarantee and Resolution Fund contributions when compared to the booked amount in the same period of last year.

BRD Group’s net loans outstanding amount reached RON 28.7 billion, 3.5 percent higher compared to end of March 2016, driven by sustained performance on both individuals and large corporate segments.

Outstanding of loans to large corporate customers is up by 4.9 percent compared to March 2016, on strong growth in medium and long-term financing. Leasing portfolio is also on a positive trend, with two-digit increase yoy.

Individuals loan portfolio rose by 5.8 percent versus March 2016, driven by favorable dynamics of unsecured consumer loans and housing loans. Loan production for individuals registered a robust increase, reaching RON 1.3 billion in Q1 2017, up by 17 percent compared to the same period of last year, on strong origination of consumer loans, up by 26.3 percent compared to Q1 2016, to RON 987 million.

The customer deposits base expanded both on retail and non retail, reaching RON 41.4 billion, up by 6.7 percent compared to end of March 2016. The commercial activity displayed a robust performance in the first quarter of 2017, with the number of active individual customers reaching 2.15 million, 68k higher compared to end of March 2016.