BRD - Groupe Société Générale (BRD) investor relations material

Executive summary

• Achieved strong commercial and financial performance in H1 2026, with double-digit loan growth and robust profitability despite a volatile macroeconomic and geopolitical environment.

• Net profit reached RON 784m in H1 2026, up 2.5% year-over-year, with ROE at 17% excluding turnover tax.

• Maintained strong asset quality and capital adequacy, supporting sustainable growth and digital transformation.

• Total assets increased to RON 96.3 billion as of 30 June 2026, driven by growth in loans and advances.

Financial highlights

• Gross Operating Income reached EUR 1.11 billion, up 10% year-on-year; net banking income rose 1.8% YoY to RON 2,206m in H1 2026.

• Net profit for H1 2026 was RON 743.4 million, with earnings per share at RON 1.0668.

• Operating expenses decreased by 0.5% YoY in H1 2026, with strict cost discipline.

• Cost-to-Income Ratio dropped below 50% reported, and adjusted to 43% excluding regulatory charges.

• Net loans including leasing grew 11.6% YoY to RON 58.3bn; deposits up 4.1% YoY to RON 73.7bn.

Outlook and guidance

• Expectation for inflation to decline to 5.5% year-on-year by end of 2026, with modest GDP growth amid fiscal tightening.

• Central bank likely to maintain current monetary policy rate until inflationary pressures subside.

• Full-year guidance for cost of risk remains at 52 bps, with stable asset quality anticipated.

• Budget deficit for 2027 projected to be below 6%, indicating fiscal consolidation.