BRD Romania reported an impressive evolution of the main commercial and financial indicators as of June 30, 2024, at a consolidated level, according to International Financial Reporting Standards (IFRS). BRD Romania continues to demonstrate solid growth and exceptional financial performance, being an indisputable leader on the Romanian banking market.
Growing Volumes on All Business Lines at BRD Romania
BRD Romania registered significant growth in all business lines. Corporate financing activity increased by 22,3% year-on-year, with a robust performance in both the SME (+14,3%) and large corporate (+26,9%) segments. Loans granted to individuals reached a record level of 5,2 billion lei in the first half of 2024, marking a 51% increase compared to the same period last year.
Substantial Increase in Deposit Base
BRD Romania reported an impressive increase in the deposit base, with 12,0% year/year, at the end of June 2024. Also, BRD Asset Management (BRD AM) rose to first place in the top of the UCITS, with assets managed in the amount of 5,1 billion RON, up 46% compared to the previous year, holding a 21% market share.
Increased Adoption of YouBRD E-Banking Application
YouBRD, the e-banking application of BRD Romania, reached a number of 1,6 million users at the end of June 2024, marking a 20% increase compared to the previous year. This underlines BRD Romania's commitment to improving the digital experience of its customers.
Sustainable Financing with Positive Impact
In the last three years, BRD Romania has exceeded the ambitious goal of EUR 1 billion in sustainable financing, 18 months ahead of the original deadline. These results reflect the bank's commitment to the transition to sustainability and its support for green projects.
Operational Performance and Controlled Risk
BRD Romania maintained a strong operational performance, thanks to increased volumes and rigorous cost control. The NPL ratio remained at a record low of 2,2%, with a comfortable coverage ratio of 77%.
Solid Financial Results
BRD Romania's net profit for the first half of 2024 was 694 million lei, compared to 768 million lei in H1 2023, with a return on equity (ROE) of 16%. This result includes the impact of the new tax on turnover, amounting to RON 62 million, for the first half of the year.
Statement by the CEO of BRD Romania
"In the first half of the year, BRD Romania achieved a strong commercial performance in all business segments. Our loan portfolio grew by 14% year-on-year, driven by strong contribution from both the corporate and retail segments. We have remained an active supporter of SMEs, accompanying our clients to fulfill their various projects. New financing under IMM Plus reached 3 billion lei in S1 2024, significantly above the similar period last year. Lending to the large corporate segment also maintained impressive growth of 27% year-on-year due to strong partnership and market value recognition.
Loan production for individuals was very solid, reaching record volumes of 5,2 billion RON (+51% compared to last year in H1 2024), with higher production for both consumer and housing loans, demonstrating BRD Romania's strong customer orientation.
Moreover, BRD Romania continued to demonstrate its commitment to support the transition to sustainability. By the end of June 2024, BRD Romania's cumulative sustainable financing over the last 3 years has reached almost 1,1 billion euros, already exceeding the ambitious goal of 1 billion euros, originally set for the end of 2025. In addition to a substantial base of deposits , up by 12,0% compared to last year, BRD Romania enjoys the remarkable performance of BRD AM, which climbs to first place in the top of the UCITS, with a 46% annual increase in managed assets.
Last but not least, we remain focused on improving our customers' experience on remote channels as well, bringing new functionality to both the mobile app and the web platform. For example, a loyalty program, Cashback, was recently added to the YOU BRD mobile banking application and has already exceeded 300 thousand users in just one month since its launch. Thus, the application is constantly growing both in terms of functionality and the number of users, which reached 1,6 million at the end of June 2024.
All of the above translated into a solid financial performance for the first half of 2024, with a net result of 694 million RON and a return on equity (ROE) of 16%, which includes the impact of the new tax on turnover , worth 62 million RON, for the first half of the year.
In the future, we reiterate our strong dedication to financing the Romanian economy, continuing to be a reliable partner for all our clients and fulfilling with great responsibility our key role as a top universal bank in Romania", said Maria Rousseva, CEO of BRD Romania.