SocGen's Romanian division boasts 21% ROE as its profit surges by 21% y/y in January-September

By bne IntelliNews November 21, 2023

Romania’s third-largest bank by assets BRD SocGen reported its net profit increased by 20.8 % y/y to RON1.22bn in January-September, backed by robust corporate lending, leading to an annualised return on equity (ROE) ratio of 20.9% up from 16.7% in the same period last year.

The bank’s market capitalisation rose by 4% upon the release of the January-September financials, to RON12.2bn (€2.5bn). 

BRD reported a 10% y/y rise in its stock of loans (leasing receivables included), sustained to a larger extent by robust lending activity in the corporate segment, while the dynamic in the retail segment was solid but within a  market posting a very limited growth, reflecting the impact of tightening financial conditions, higher interest rates and rising uncertainties on perspectives.

Financing of corporates continued to show a strong dynamic, with the stock of loans surging at a double-digit pace of 20.0% y/y, while the net retail loans were up by only 4.1% y/y.

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