BRD - Groupe Société Générale (BRD) Q4 2025 earnings summary

Executive summary

• Achieved strong commercial and financial performance in 2025, with net loans up 13% year-over-year and deposits up 10.5% year-over-year at year-end.

• Net profit exceeded EUR 1.5 billion (RON 1,545.7 million), up 6% year-over-year excluding turnover tax, with return on equity reaching 17% (excluding turnover tax).

• Digital transformation accelerated, with 13% growth in mobile app users to 1.87 million and 38.2 million transactions (+25% YoY), alongside new digital features.

• Sustainability commitments advanced, with nearly EUR 1 billion in new sustainable financing and the launch of the first sustainability-linked loan for SMEs in Romania.

• Maintained robust asset quality with NPL ratio at 2.4% and high liquidity and capital adequacy.

Financial highlights

• Net banking income rose 7.9% year-over-year to RON 4,350 million, with net interest income up 6.6% and fees and commissions up 10%.

• Operating expenses increased 9.9% year-over-year, mainly due to a 57.5% rise in turnover tax.

• Cost/income ratio (excluding turnover tax) improved to 45.3% from 45.9% year-over-year.

• Net impairment losses on financial instruments increased to RON 225.2 million in 2025 from RON 145.3 million in 2024.

• Market capitalization reached EUR 3.7 billion; share price up 44.3% year-over-year to RON 26.9.

Outlook and guidance

• Expectation of gradual inflation decrease, with end-2026 target below 4% and NBR forecasting 3.7% by year-end.

• Central bank may cut rates in Q2 2026 if fiscal consolidation continues.

• Dividend payout proposal of 50% of 2025 net profit, subject to approval.