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

Executive summary

• Net profit reached RON 350m in Q1 2025, up 7.2% year-over-year, with double-digit ROE at 14.5% and strong growth in net interest and fee income.

• Lending outstandings grew 21% year-over-year, with retail up 14% and corporate up 31%.

• Total assets stood at RON 88.2bn as of March 31, 2025, up 1.6% from December 2024, driven by loan growth and higher cash balances.

• Deposits increased 5.2% year-over-year, maintaining a solid and balanced funding base.

• Digital engagement surged, with 1.76m YouBRD users (+19% y/y) and 8.6m transactions (+20% y/y).

Financial highlights

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

• Net interest income rose 5.9% year-over-year to RON 758.5m; net fee and commission income increased 29% to RON 240.1m.

• Gross loan portfolio grew by RON 1.9bn since December 2024, reaching RON 51.5bn.

• Cost/income ratio improved to 53.1% (from 53.8% in Q1 2024).

• Net impairment losses on financial instruments increased to RON 79m from RON 54.3m year-over-year.

Outlook and guidance

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

• Management confirmed the bank's ability to continue as a going concern, with no material uncertainties identified.

• Cost of risk expected to remain at normalized levels, with NPL ratio near historical lows.

• Continued focus on digitalization and sustainable financing initiatives.

• Ongoing compliance with capital and liquidity requirements and focus on loan growth and risk management.