BRD-Groupe SocGen, the second-largest bank on the Romanian market, in the first half of the year derived net profit close to 38 million euros, 32% higher in real terms as compared to the similar period of last year, while the value of assets climbed to 2.29 billion euros.
"The increase is almost in line with our expectations, even somewhat superior. I hope we will start reaping the fruit of the investment efforts we've made over the last 3-4 years," Patrick Gelin, BRD general manager, told Ziarul Financiar.
He says the bank is planning several new commercial initiatives until the end of this year, which would lead to an increase in the number of customers, as well as to the ability of retaining the existent ones.
"We are not as interested in raising our assets as in maintaining profitability, and H1 results are showing this very clearly. At the same time, we want to meet the needs of our customers," Gelin states.
The BRD official hopes the bank will end the year amid "solid profit growth, in line with first-half performances", after the drop registered in 2003 against 2002, mainly because of regulations regarding provisioning.
The total volume of loans granted by BRD at the end of June stood at 55,569 billion ROL, 39% higher as compared to June 30, 2003, and up 13% from the end of last year. At the same time, deposits by customers posted slower growth, up 37%, reaching 66,804 billion ROL.
Patrick Gelin does not think the National Bank's recent move to raise the minimal compulsory reserves from 25% to 30% of sums attracted in foreign currency will be sufficient to discourage foreign currency-denominated credits. The move could entail a stabilisation of demand for this type of financing, at best.
"BRD has been more cautious than other banks in granting foreign currency-denominated loans," says Gelin.
At the end of July, foreign currency-denominated loans accounted for almost 51% of BRD's total credit portfolio, as compared to 67% at the level of the entire banking system.
Companies weigh 70.75% of the total credits, with natural persons getting close to 30%.
The volume of financing aimed at natural persons rose in the first half of this year by 80% as compared to the first half of last year, a much more rapid growth pace than the 27% increase in the case of the amount of credits granted to companies.
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