Société Générale subsidiary, BRD,
Romania’s second-largest bank by assets, has posted a net profit of
RON501m ($158.8m) for the 12 months to 31 December, a fall of 31%
compared with the prior year.
BRD’s earnings were
significantly below consensus analyst forecasts, profitability
wise, due to higher risk costs.
Go deeper with GlobalData
BRD underperformed the
market with total lending contracting by 1% during fiscal 2010 to
RON34.5bn while total deposits inched up by 2% to
RON298.8bn.
Despite higher
non-interest expenses than forecast, BRD successfully reduced its
cost-income ratio from 43.9% at the end of 2009 to 42.2% a year
later.
BRD also posted
sector-beating NPL (loans overdue by more than 90 days) metrics of
9.13% against the sector average of 11.85%.
BRD said that it was
expecting risk costs to be flat in the first half of 2011 and to
fall during the second half.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataBRD ended 2010 with a
branch network of 937 outlets, up seven during the year.
Guy Poupet, chairman and
CEO of BRD said:
“We are approaching 2011
in full confidence, as we rely both on our strength and on the
support from our parent-company, the scenario we’re taking into
consideration indicating a moderate improvement of the economic
context.
“Nevertheless, we think
that 2011 will continue to be a difficult year, particularly in
what the high net risk cost is concerned.”
