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BRD: Operating Income up by 11%, Net Profit of RON 474 million after the first nine months

31 Oct 2010

The main financial ratios of BRD-Groupe Société Générale as at September 30, 2010, according to Romanian Accounting Standards*:

The net banking income reached RON 2,652 million (EUR 634 million), up by 5% compared to the first nine months of 2009;
The gross operating income amounted to RON 1,626 million (EUR 389 million), up by 11% compared to the first three quarters of 2009;
The total volume of loans extended to the customers was of RON 34.05 billion (EUR 8 billion), up by 3% compared to September 30, 2009;
The cost/income ratio stood at 38.7%, down by 336 basis points compared to September 30, 2009;
The net risk cost was of RON 1,053 million (EUR 252 million) as compared to RON 673 million in the first nine months of 2009;
The net profit reached RON 474 million (EUR 113 million), down by 28% compared to September 30, 2009.

* The conversion to EUR for the profit and loss account was based on the average rate of exchange calculated for the first 9 months of the year, i.e. RON 4.1837 for EUR 1, while for the balance sheet, the conversion was made based on the NBR rate of exchange as at September 30, 2010, of RON 4.2674 for EUR 1.

The financial results obtained by BRD - Groupe Société Générale during the first nine months of the year reflect the robustness of the bank's commercial activity, as well as the resistance of the business to a highly difficult economic environment.

The net banking income reached RON 2,652 million (EUR 634 million), up by 5% as against September 30, 2009. The gross operating income has also recorded an increase of 11% compared to the similar period of last year, reaching RON 1,626 million (EUR 389 million), reflecting a dynamic operational activity.

The total volume of loans extended to the customers was of RON 34.05 billion, up by 3% as compared to September 30, 2009, a positive evolution given the current economic environment.

The volume of the loans to private customers stood at RON 16.4 billion, up by 4%. The loans to corporate customers also increased by 3%, up to RON 17.65 billion.

At the end of the first nine months of 2010, the customers' deposits had recorded a steady level compared to September 30, 2009, reaching RON 29.96 billion.

At the same time, the bank particularly focused on controlling the general expenses, which decreased by 3% as against the first nine months of 2009. This contributed to further improving the operating ratio: 38.7%, down by 336 basis points as against September 30, 2009

The return on equity (ROE) at the end of the first nine months was of 14%.

The net profit obtained after the first nine-month period is of RON 474 million (EUR 113 million), down by 28% against the same period of 2009.

"The results obtained after the first nine months of this year prove the bank's constancy in obtaining good commercial results. We continue to hold a strict control of the general expenses, which generates a good cost/income ratio. The difficult economic environment has a direct impact on us, the increase of the net cost of risk being a consequence of the deterioration of general economic situation", declared Guy Poupet, Chairman - CEO of BRD - Groupe Société Générale.

BRD - Groupe Société Générale had, at the end of September 2010, almost 2.5 million customers. At the same date, BRD had 2.2 million valid cards and operated a network of approximately 1,500 ATMs and more than 21,000 POS. The total assets of the bank as at end September 2010 stood at RON 47 billion (EUR 11 billion), down by 2% as against September 30, 2009.

The Q3 report is available to the public and investors on the website of the bank: www.brd.ro. Copies of the report can also be obtained upon request, free of charge, at the head office of BRD-Groupe Société Générale, located 1-7 Ion Mihalache Bd., 1st district, Bucharest.

BRD-Groupe Société Générale is the second bank in Romania in terms of total assets, and it has the second market capitalisation on the Bucharest Stock Exchange.

BBRD is part of the Société Générale Group, one of the largest groups of financial services in the Euro Zone. The group has 157,000 employees worldwide, in three key businesses:

Retail banking, specialised financing and insurance
Private Banking, Asset Management and Investor Services
Corporate & Investment Banking

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BRD: Operating Income up by 11%, Net Profit of RON 474 million after the first nine months