BRD - Groupe Société Générale (BRD) Q4 2023 earnings summary

Executive summary

• FY23 net profit was RON 1,655,829 thousand, up 23.8% YoY, with ROE of 20.9%; strong revenue growth and positive operating jaws supported results.

• Year-end total assets reached RON 83,848,961 thousand, up from RON 73,841,767 thousand in 2022.

Financial highlights

• Net banking income was RON 3,834,223 thousand in FY23, up 10.8% YoY; Q4 income was RON 1,003m, up 9.3% YoY.

• Net interest income was RON 2,725,154 thousand, up 15.0% YoY; net fees and commissions were RON 750,243 thousand, down 0.5%.

• Gross operating profit was RON 1,939,078 thousand and total operating expenses were RON 1,895,145 thousand; expenses rose 8.6% YoY.

• Q4 net profit was RON 429m, up 33.4% YoY.

Outlook and guidance

• A 60% payout of FY23 net profit is proposed, equal to a gross dividend of RON 1.4070/share, subject to regulatory agreement and GSM approval on April 25, 2024.

• IMF estimated Romania GDP growth at 2.75% for 2024; inflation was expected to decline gradually, with short-term pressure from fiscal measures and external conditions.