BRD cuts personnel costs by 3%

BRD, the second-largest bank on the Romanian market in terms of assets had a 39% cost/income ratio in the first half of the year, from 43.8% a year earlier, in the context where net banking income (from the interest rate margin and from commissions) rose by a mere 7%, while general costs fell by 5%.

Guy Poupet, chairman of the bank, says internal cost cutting measures contributed to a “very solid cost/income ratio”.

“Profitability of the banking activity in general remained above the banking system average – with operating performances – an increase in the net banking income, being proof of the fact that the bank’s business model is a viable one, which works well even in the context of a prolonged economic crisis,” said Poupet.

The average number of employees amounted to 8,429, down by 71 against a year ago. Under the circumstances, employee pay costs were cut by 3.1%, to 244 million RON (56 million euros), resulting in an average cost per employee per month of 4,846 RON.