BRD derives 70m-euro net profit in Q1

BRD, the second-largest bank on the market, posted profit worth 70 million euros (259 million RON) in Q1, up 37% on 2007. In RON, the difference was a 54% increase, after the RON depreciated by 9%. “The bank was able to perform in a difficult environment, which featured worsening market conditions, with lending being once again the growth driver. Both markets (retail and corporate) saw significant increases in terms of volume, especially retail banking and funding for SMEs,” said Patrick Gelin, BRD chairman. The bank’s total assets amounted to 41 billion RON (11 billion euros) at the end of March. Lending amounted to almost 28 billion RON (7.5 billion euros), up 44% against end-of-March 2007 figures. Deposits exceeded 27 billion RON (7.2 billion euros), up 33%. The return on equity (ROE) stood at 31%. “The first-quarter results are in line with our expectations. They confirm once again the validity of our long-term strategy, which is profit generating. An important aspect is that we have gained 130,000 new clients since the end of December, which strengthens our position on the market of individual clients,” added Gelin. The value of loans granted to individuals went up 6% against the end of 2007, and 47% against March 31, 2007, whilst consumer loans proved the most popular and real estate loans also saw an increase.