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

Executive summary

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

• Net loans outstanding increased 17% year-over-year, with SME loans up 32.1% and large corporate loans up 19.3% as of June 2025.

• Individuals' loan production reached RON 7bn in H1 2025, up 34% year-over-year.

• Deposits rose 8% year-over-year, with large corporates up 23.2% and individuals up 5.3%.

• Total assets increased to RON 92.7 billion as of June 30, 2025, reflecting growth in loans and cash balances.

Financial highlights

• Net banking income grew 10.1% year-over-year in H1 2025 to RON 2,167.3 million.

• Operating expenses increased 7% year-over-year in H1 2025, mainly due to higher personnel and administrative costs.

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

• Net cost of risk was RON 141.9 million in H1 2025, up from RON 90.8 million in H1 2024.

• Basic earnings per share for H1 2025 was RON 1.0970, compared to RON 0.9899 in H1 2024.

Outlook and guidance

• Macroeconomic headwinds and new fiscal measures, including VAT and turnover tax increases effective August 2025, are expected to impact future profitability.

• Inflationary pressures are anticipated to continue, with fiscal-driven increases in H2 2025.

• Management assessed the group as a going concern with sufficient resources for the foreseeable future.

• The bank maintains a strong capital and liquidity position to support future lending.