May 7 (SeeNews) - Romanian bank BRD [BSE:BRD], part of France’s Societe Generale Group, said that its consolidated net profit decreased to 326.3 million lei ($70.6 million/65.6 million euro) in the first three months of 2024, from 342.1 million lei in the comparable prior-year period.
The drop in net profit was driven by elevated inflation, costlier financing, and costlier debt servicing, the lender said in an interim financial report filed with the Bucharest Stock Exchange last week.
BRD's net banking income rose to 984.7 million lei in the first quarter of 2024 from 935.3 million lei a year earlier. Net interest income increased to 716.2 million lei from 670.5 million lei, while net fees and commissions income climbed to 186.1 million lei from 172.3 million lei.
The bank's loan portfolio decreased to 173.2 million lei in the first quarter of 2024 from 209.9 million lei in the comparable period of 2023. The lender is in the process of selling off its entire loan portfolio to an undisclosed third party, BRD said in the same statement. The sale, which was approved on January 26, is expected to be finalized in 2024.
Total assets stood at 84.188 billion lei at the end of March, up from 83.849 billion lei at the end of 2023. Total liabilities increased to 75.021 billion lei at the end of the first trimester from 74.987 billion lei at the end of last year.
BRD shares traded 0.48% higher at 20.9 lei as at 1628 CET on May 7 on the Bucharest bourse.
(1 euro=4.9757 lei)
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