BRD - Groupe Société Générale (BRD) Q1 2025 earnings summary

Executive summary

• Loan portfolio expanded 21% year-over-year, with corporate lending up 31% and retail lending up 14%, supporting the Romanian economy.

• Net profit for Q1 2025 reached 349.8 million RON, up 7.2% year-over-year, with strong growth in net interest and fee income.

• Digital banking users increased 19% year-over-year to 1.76 million, with 8.6 million transactions (+20% y/y), reflecting successful omni-channel and digital strategies.

• Sustainable and green financing exceeded EUR 200 million in new production for the quarter, supporting green and social initiatives.

• Market share gains in lending and asset management, with a 60 basis point increase in lending market share and over 24% share in asset management.

Financial highlights

• Net profit rose 7.2% year-over-year to RON 350 million in Q1, with return on equity at 14.5%.

• Net banking income rose 9.7% year-over-year to RON 1,080 million, driven by lending and transaction fees.

• Cost-to-income ratio improved to 53.1% from 53.8% year-over-year.

• Net impairment losses on financial instruments increased to 79.0 million RON, with cost of risk at 61 basis points.

• Loan-to-deposit ratio increased by 10 percentage points year-over-year to 78%.

Outlook and guidance

• Guidance for cost of risk maintained at 50 basis points for the year, with NPL ratio near historical lows.

• Capital and liquidity levels are well-positioned to support further lending expansion.

• Continued focus on digitalization and sustainable financing initiatives.