BRD, 6-month net profit of 757 million lei, unadjusted profit, 767 million lei

BRD Group reported an unadjusted net profit of 757 million lei during the first semester of this year, with a slight rise of 0.9 percent, in comparison with the similar period of last year, as a result of improving net incomes from interest, growing volumes and the positive level of the risk cost, according to the interim financial statements, sent on Thursday by the Bucharest Stock Exchange (BVB). 

The unadjusted net profit of the Bank was 767 million lei, establishing an advance of 2.2 percent as opposed to the first semester of 2017. 

According to the quoted document, the balance of net loans (including leasing) went up by 3.8 percent at the end of June 2018, in comparison with the similar period of last year and by 2.1 percent from the end of the year. 

"The performance was supported mostly by the solid contribution of individual clients. The balance of net loans for individuals went up by 7.3 percent, in the annual dynamic, mostly due to the rise of real-estate loans (for the most part First Home). On the non-retail segment, the portfolio went down in the annual dynamic, due to the contraction of the volume on the SMEs segment, in the context of a drop in demand, followed by the bank's strict policies concerning risk management," the document further reads. 

Deposits went up by 2.8 percent as opposed to the end of June 2017 and remained almost unmodified, in comparison with the end of December 2017. 

The net income of the BRD Group went up by 10.5 percent as opposed to the similar period of the previous year, being influenced in a positive way by the staedy rise of net income from interest, net income from commissions and other high income categories. The net income from interests increased by 13.2 percent in the annual dynamic and were influenced in a positive way by the solid growth of interest loans in lei (three-month interbank offered rate ROBOR, from 2.33 percent during first semester of 2018, as compared to 0.84 percent during first semester of 2017) and rise of volume on the retail segment. Net incomes from commissions rose by 3.2 percent from the similar period of last year, being boosted by larger transaction volumes and the rise of income from storage and custodial services. 

"The BRD Group recorded a considerable improvement of the quality of assets reflected in: the Non Performing Loans (NPL) lower by 2.5 points, to 6.3 percent at the end of June 2018, from 8.8 percent at the end of June 2017, and a high level of coverage of the non-performing exposures, the coverage rate reaching 73.0 percent at the end of June 2018 (from 75.0 percent at the end of June 2017), indicators according to the ABE methodology", the BRD Group report also shows.