BRD reported record net profit of 1.65 billion RON, up 24 percent in 2023

BRD Groupe Société Générale announced its financial results for the year 2023. The company reported a net profit of 1.65 billion, a 24 percent growth compared with 2022.

BRD Group full year revenues reached RON 3,834 million compared to RON 3,459 million in 2022, higher by +10.8 percent, with increasing volumes and elevated market interest rates being the main engines of growth.

“In a context which remained rather challenging, BRD delivered an outstanding performance, in terms of commercial activity and financial results. Our loan portfolio grew by almost +13 percent compared to 2022 end. We reached a record of RON 7.7 bn RON new loans to individuals and 1 out of 7 loans to individuals, in stock at 2023 end, is granted by BRD. At the same time, we actively supported companies in their endeavors, providing the necessary funding to grow, create jobs or fuel innovation, contributing to the overall economic performance. Being a remarkable catalyst of growth, lending on corporates advanced by 23 percent building on both strong contribution from SMEs and large corporate customers. In addition, we further progressed towards the EUR 1 bn strategic objective of sustainable financing by the end of 2025, adding in 2023 new volumes of RON 2.3 bn. With a cumulative amount of EUR 800m sustainable financing, this target is expected to be reached in advance

Enhancing digital customer experience remains a top priority on our agenda. BRD digital offer was expanded with 100 percent online investment products. We have now more than 1.4 million users of our mobile application, YouBRD, growing by 33 percent compared to 2022. All the above translated into a solid financial performance, with +24 percent in net result and ROE of 21 percent, demonstrating the strength and resilience of our business model. Further on, BRD remains a committed partner for all its clients, firmly and responsibly fulfilling its mission as a leading bank in Romania”, said Maria Rousseva, CEO of BRD Groupe Société Générale.

BRD Group net loans, including leasing receivables, recorded double-digit growth, +12.8 percent compared to 2022 end, given a strong contribution from both retail and corporate segments.

On the retail side (net loans outstanding +6.7 percent YoY at 2023 end), BRD marked a record level of RON 7.7 billion new loans granted to individuals in 2023 and the best year for new consumer loans, with a growth of +20 percent YoY. Having granted 1 out of 7 loans in stock in the market, BRD consolidated its position on individuals segment. Net loans outstanding on small businesses contributed also to the segment growth, reaching a dynamic of +46.4 percent YoY at 2023 end.

BRD plays an important role in financing the green transition by incorporating ESG principles into its lending operations and defining clear strategic objectives in this direction. The milestone of EUR 1 bn of sustainable financing to be granted by 2025 end is expected to be reached in advance. In 2023, the value of new sustainable finance transactions which sustained, among others, an important photovoltaic project or co-financed energy efficiency projects, amounted to RON 2.3 bn, bringing the cumulative sustainable financing at about EUR 800m as of 2023 end.

Deposit base had a steady expansion (+10.1 percent YoY at 2023 end). Most stable and ample funding source, retail deposits, are constantly increasing, marking a strong performance of +9.9 percent YoY at 2023 end. Corporate deposits had a similar evolution, being up by +10.6 percent YoY, mainly driven by higher net inflows from SMEs customers (+15.1 percent YoY at 2023 end).

Net interest revenues marked a solid 15 percent increase on a yearly basis, tempered by higher expenses, primarily on growing term deposits. Net fees and commissions remained rather stable compared to their 2022 level, on counterbalancing effects: lower revenues from cards activity given higher penetration of current account packages, in line with market trend, contraction of fees on cash transactions mainly on a base effect, but increasing revenues from lending, insurance and capital market activities. Other revenues had a very positive evolution given a strong and stable momentum of financial markets activity.

Gross operating income reached RON 1,939 million (+13.1 percent compared to 2022) and cost to income ratio improved on positive jaws effect (49.4 percent in 2023 vs 50.4 percent in 2022).

Considering the results of the year as well as the expected capital adequacy trajectory, the Board of Directors has decided to propose a dividend corresponding to a payout ratio of 60 percent of the Bank’s 2023 net result (gross dividend of RON 1.4070/share) , subject to a favorable vote by the Annual General Meeting of Shareholders on April 25th , 2024.

BRD – Groupe Société Générale operates a network of 423 units. Total assets of the bank at December 2023 end amounted to RON 81.4 billion. BRD is part of the Société Générale Group, one of Europe’s leading financial services groups and a major player in the economy for over 150 years. The group has 117,000 employees in 60 countries and 25 million customers worldwide.