BRD - Groupe Société Générale (BRD) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 rose to RON 764.5 million, up 10% year-over-year, with strong contributions from both retail and corporate segments.

• Lending activity grew 17% year-over-year as of June, with SME loans up 32.1% and large corporate loans up 23%.

• Individuals' loan production reached RON 7bn in H1 2025, up 34% year-over-year; consumer and mortgage loans production rose over 30%.

• Sustainable finance expanded, with EUR 351 million in new loans in H1 2025.

• Digital transformation advanced, with 1.8 million mobile app users (+18% YoY) and over 800,000 enrolled in the cashback loyalty program.

Financial highlights

• Net banking income grew 10.1% year-over-year in H1 2025 to RON 2,167 million, driven by 7% NII growth and 18% increase in fees and commissions.

• Operating expenses increased 7% year-over-year, mainly due to staff and regulatory costs.

• Gross operating income rose 13.6% year-over-year in H1 2025.

• Cost/income ratio improved to 50.7% in H1 2025, down from 52.2% a year earlier.

• Other income rose 19.1%, mainly from dividends and a favorable base effect.

Outlook and guidance

• Macroeconomic environment remains challenging, with fiscal consolidation and inflation expected to rise to 8–9% in H2 2025.

• Central bank policy rate expected to remain at 6.5% through year-end, with possible changes in H1 2026.

• Management remains positive for H2 2025, supported by strong liquidity and capital base, but acknowledges potential impacts from fiscal and macroeconomic pressures.

• A fiscal package effective August 2025 will increase VAT rates and double the tax on turnover from 2% to 4% for H2 2025 and 2026, expected to impact future profitability.

• Romania's GDP growth outlook reduced due to austerity measures.