BRD-SocGen, the second-largest bank on the Romanian market byassets, ended the third quarter of the year with a 107 million-RON(around 25 million-euro) net profit, down 54% against the similarperiod of 2009.
This is the lowest quarterly profit recorded since the beginningof the crisis, with provisions for non-performing loans reaching anall-time high of 425 million RON (100 million euros) inJuly-September. "The difficult economic context influences usdirectly, with the rise in the net cost of risk resulting from thedeterioration of the overall economic situation," says Guy Poupet,president of BRD.
In the first nine months of the year the bank had of over 1 billionRON (247 million euros) in provision costs, up 56% against costsrecorded in the similar period of 2009. The net profit declineimplicitly deepened: it saw a 13.7% drop in mid-year against thefirst half of 2009, and plummeted to 28% at the end of the thirdquarter.
The result was, however, driven by the net interest rate margin,which fetched almost 1.4 billion euros in net revenues, up 21%against the similar period of 2009, with BRD no longer involved inthe deposit interest rates battle.
BRD shares fell 0.81%, to 12.3 RON in yesterday's trading sessionof the Bucharest Stock Exchange, with the market capitalisationamounting to 8.5 billion RON (2 billion euros).
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