BRD targets over 232m-euro profit

BRD – Groupe Societe Generale, the second-largest bank in terms of asset value, has budgeted a minimum 15% net profit increase for this year according to the budget draft, which will be discussed in the General Meeting of Shareholders on April 18. Planned investments could reach a total of 70 million euros.
BRD’s net consolidated profit could therefore exceed 790 million RON (around 232 million euros).
In February, BRD chairman Patrick Gelin stated he was expecting a 10-15% profit increase for this year, given that the bank has set out to make significant investments by expanding the branch network and developing IT systems.
In 2006, BRD reported consolidated net profit worth 687.6 million RON (195 million euros) up 19% against 2005. Some 45% of the net profit for 2006 is to be distributed in the form of dividends.
According to the budget draft, BRD’s gross operating profit is expected to go up by more than 25% this year, against last year’s 21% surge, while the net banking income, which includes the interest margin, commissions, income resulting from foreign currency exchanges and other revenues, is poised for 25-30% growth. Last year, BRD’s net banking income increased 26% to 1.77 billion RON (502 million euros).
Additionally, the bank could invest 65 to 70 million euros this year, mainly targeting the expansion of its branch network. In 2006, the total value of BRD’s investments stood at 67 million euros.
Also, BRD intends to up by 35% the volume of granted loans, following last year’s 79% increase. The value of BRD’s loan portfolio could therefore exceed 25 billion RON (7.4 billion euros) by the end of 2007. As for deposits, the bank forecasts a 25% increase for this sector, down from 34% last year.