BRD (Romanian Development Bank)-Groupe Societe Generale, Romania’s second-largest bank, posted net profit worth 1,773 billion ROL in nine months this year, up 8% in nominal terms since September 2002. However, in real terms, the figures in euros show the net profit to have dropped 7.2%, from 50.4 million euros at the end of September 2002, to 46.75 million euros in Q3 2003.
Although not disclosed in absolute value, the gross operating profit increased 17% in real terms in the nine months, according to bank officials.
This was the first year when the banking system profitability posted a decline. Shrinking profit margins, as well as soaring investments in market shares were the main factors behind the drop in profitability.
“BRD has operated in an economic and regulatory environment that is still difficult and on a market characterised by fierce competition, on the one hand, and by a surge in the demand for loans, on the other. We consider the gross operating profit to be the most important for us, as it comes from the gap between the net banking revenues and the general expenses and went up 17% in the quoted period, in comparable terms,” Bogdan Baltazar, president of the BRD Board told Ziarul Financiar.
The total volume of granted credits amounted to 45,834 billion ROL, up 64.8% from September 30, 2002. By the end of September 2003, the resources attracted by the bank climbed 23.8%, up to 59,956 billion ROL, chiefly due to the broadening range of saving products, the BRD president added.
BRD-Groupe Societe Generale has 4,181.4bn ROL in capital, divided into shares with 3,000 ROL in face value. The bank’s stock is listed on the Bucharest Stock Exchange (BSE), and its market capitalisation is estimated at $730m. oana.nuta@zf.ro