BRD Group reports 241 million RON net profit, down 20 percent in Q1

BRD Group recorded a net result of RON 241 million, 20 percent lower YoY, from 301 million RON in Q1 2019 on lower fees and commissions and other revenues categories and negative cost of risk, despite a still strong net interest income growth and increased commercial performance, the company shows.

The Bank recorded similar trends, which led to a net result of 233 million RON versus 289 million RON in Q1 2019.

BRD Group registered quasi stable operational performance, with gross operating income of 342 million RON in Q1-2020 (-7.1% YoY excl. Deposit Guarantee and Resolution Funds costs).

Risk costs turned negative to 60 million RON versus a release of 26 million RON in Q1-2019, mainly due to an 25 million Euro overlay booked in relation to COVID-19 economic impact.

“In the first three months of the year, BRD delivered a dynamic commercial performance. Robust business activity was registered on all segments, with continued lending growth, supported by strong corporate financing activity, sustained collection of deposits and growing use of digital channels,” a company report reads. “Though in the economic context generated by the COVID-19 pandemic the profitability was scaled back by the negative cost of risk, the operational performance remained resilient. The crisis we are facing is unprecedented, with complex economic challenges and difficult to quantify recession perspectives. But offset policies are in place. Public authorities delivered support in terms of liquidity, credit guarantees, and household income assistance measures.”

According to BRD, the Romanian banking system is healthy, and will be a key actor of the economic recovery.