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

Executive summary

• Achieved strong commercial and financial performance in 2025, with lending activity up 13% year-over-year and deposit growth above 10%.

• Net profit reached RON 1,546m, up 6% year-over-year excluding turnover tax, and adjusted ROE stood at 17%.

• Digital transformation accelerated, with 13% growth in mobile app users and nearly 90% client penetration; 1.87m YouBRD users and 38.2m transactions (+25% YoY).

• Sustainability financing exceeded expectations, with nearly EUR 1 billion in new sustainable loans.

• 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 4,350m; net interest income up 6.6% YoY.

• Net profit exceeded EUR 1.5 billion; profit growth of 6% when excluding turnover tax.

• Cost base increased 9.9% due to turnover tax; excluding tax, cost growth was 6.6%.

• Cost/income ratio improved to 45.3% (excluding turnover tax), down 60 basis points year-over-year.

• Market capitalization reached EUR 3.7bn; share price up 44.3% YoY to RON 26.9.

Outlook and guidance

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

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

• Dividend payout proposed at 50% of 2025 profit, subject to approval.

• Continued focus on sustainable financing and digital transformation.

• Tier 1 capital ratio improved to 26.9% at year-end 2025.