Patrick Gelin, BRD: Business growth will slow down to 10-20%

The BRD’s business will see much slower growth in 2009 compared with the previous years, and its profitability will be under pressure, given the slowdown of the entire economy, says Patrick Gelin, the bank’s chairman and CEO. “Clearly, amid a major slowdown of economic growth, profitability will be affected. In particular, the cost of funding has risen significantly, and new credits granted will be lower than in previous years,” Gelin adds. The business of the BRD, the second-largest bank in the system, is expected to rise by 10-20% on average in 2009, compared with a 50-60% rate in preceding years. Most bankers are in fact talking about a dramatic decline on the credit segment, with funding they receive from foreign shareholders very likely to diminish in 2009.