“BRD marked a good start of the year. The first three months brought increasing commercial volumes on both corporate and retail segments, with net loans outstanding higher by +21% compared to end of March 2024. BRD remained closely connected to its customers, offering a wide range of financing solutions and savings options, designed to meet their evolving needs. Lending on corporates led the growth, with +32% YoY increase, while lending on retail continued to pick up, marking +14% YoY increase in loans outstanding. Loan origination for individuals reached RON 3.3 bn, close to record levels, higher by 41% vs Q1 2024, driven by volume growth on both consumer and housing loans.
BRD remains dedicated to contribute to building a sustainable economy, providing financing to support the energy transition and the achievement of Romania’s sustainable goals with sustainable financing production reaching close to EUR 207m in Q1 2025.
YouBRD, our mobile banking application is growing both in the number of users (1.76 million, +19% YoY) and transactions (8.6 million, +20% YoY).
In terms of financial performance, BRD delivered sustained revenue growth and positive jaws, benefiting from a maintained dynamic commercial momentum, and lower opex compared to revenues growth pace. Asset quality kept solid, while liquidity and capital levels continued to be robust, well positioning BRD for further growth.”, said Maria ROUSSEVA, CEO of BRD Groupe Société Générale.
Main commercial trends and financial indicators of BRD Groupe Société Générale at March 31st, 2025 at consolidated level, according to the International Financial Reporting Standards (IFRS):
Strong quarter in terms of commercial activity
- significant increase in corporates lending (31.9% YoY), fueled especially by dynamic performance on SMEs (+36.7% YoY)
- substantial expansion in loan origination for individuals, reaching RON 3 billion,
+41% YoY in Q1 2025
- growing deposit base, +5.2% YoY
- BRD Asset Management consolidated its leader position on UCITS market, marking significant growth of assets under management to RON 9 billion,
+52.6% YoY and 24.63% MS as of March 2025 end
- increasing number of YouBRD users, to 1.76 million, +19% YoY and growing transaction activity, + 20% YoY in Q1 2025
Committed to fund sustainable growth
- new sustainable financing transactions reached EUR 207m in Q1 2025
- Improved operating performance and positive jaws
- Low NPL ratio (2.2%) and comfortable NPL coverage (77.8%) at March 2025 end
Normalised level of cost of risk
- Net profit of RON 350 million, +7% YoY, ROE ~ 15% in Q1 2025
Commercial momentum keeps high on all business segments
Net loans outstanding, including leasing financing, reached RON 51.6 billion, marking a
+20.5% YoY increase compared to March 2024 end, sustained by vigorous lending activity across both corporate and private individuals’ segments. Lending to corporates stood out as the main growth driver, with a yearly advance of +31.9% YoY, while the retail segment continued to gain traction, achieving a solid +13.6% YoY increase at March 2025 end.
The first three months of 2025 have been strong in loan origination for individuals, with production reaching RON 3.3 billion, up by +41% YoY vs Q1 2024, building on robust performance in both consumer and housing loans. Consumer loans production totaled RON 1.9 billion, up +31% YoY, whereas housing loans production maintained a very strong growth pace, up by +59% YoY, to RON 1.4 billion. This strong performance was accompanied by the increase in the average financed value and also in the number of granted loans, including online loans (more than half of unsecured consumer loans were granted online vs one third in Q1 2024). At end of March 2025, individuals’ loans outstanding increased by
+13.4% YoY. Additionally, small businesses contributed to the positive trend, with net loans outstanding increasing by 17.3% YoY, following several improvements of the standard loans offering and the Bank’s commitment to participate in the government initiatives to support SMEs.
Leasing activity continued its solid growth trajectory, with net outstanding of leasing financing up by +15.1% YoY as of March 2025, above RON 2 bn, providing accessible and efficient financing solutions, tailored to clients’ needs.
BRD stands by its commitment to support a sustainable economy and continues to finance projects and engage in initiatives with positive impact. New sustainable financing cumulated EUR 206.8 m during Q1 2025. For corporates, covered various sectors such as clean energy, green mobility, blue financing by supporting water collection, treatment and distribution, renewable energy generation and sustainable agriculture. For retail, it represented financing the acquisitions of buildings with an A energy efficiency class, built before end of 2020 and study loans, and loans for EU/state aid financed projects dedicated to small business customers. Moreover, end of first quarter of 2025 marks one year since the conclusion of the securitization agreement (SRT) between BRD and IFC. During this period, the Bank recorded a total loan production of EUR 58.7 million intended to support SME woman entrepreneurs in Romania.
Regarding customers savings, the deposit base increased by +5.2% YoY as of end of March 2025. Retail deposits, the stable and core source of funding, rose by +4.3% YoY, building on higher inflows in current accounts from private individuals. Deposits from corporates reached a YoY growth of +6.8%, underpinned by SMEs customers, with an increase of +14.5% YoY as of March 2025 in deposits outstanding.
BRD Asset Management provides access to over 161k clients to a variety of asset classes and strategies through the 12 investment funds managed, which marked a solid increase of
+52.6% YoY in AuM, to RON 6.9 billion as of March 2025 end. BRD Asset Management further solidified its 1st position on the UCITS market, reaching 24.63% market share as of March 2025 end.
Combining traditional branch services with remote engagement
BRD ensures the availability of its products and services through a mix of on-site and remote presence. As at March 31, 2025, the Bank’s network reached 358 branches (vs. 391 as of March 31, 2024) and an increasing number of 24/7 self service areas, covering more than 60% of its network (217 vs. 201 as of March 31, 2024).
Clients’ digital interaction continues to rise, as reflected by the growing number of YouBRD mobile application users to 1.76 million (+19% YoY as of March 2025 end) and higher number of transactions done through the application (+20% YoY as of March 2025 end). Also, the functionalities of YouBRD are constantly enriched. Providing extended range of products available for visualization for authorized natural (including now, deposits, savings and current accounts, lending products) and increased transfer limit for both individuals and authorized natural persons customers segments, YouBRD is offering greater flexibility and convenience in managing financial transactions.
The cashback loyalty program available in YouBRD introduced in June 2024, enjoys a higher penetration rate, with almost 750K clients enrolled in the program as of March 2025 end and RON 2.3 million granted in cashback to BRD customers since launch.
BRD well delivers on profitability and efficiency
BRD Group net banking income advanced by +9.7 YoY during Q1 2025, driven by higher net interest income and net fees and commissions. Net interest income marked an advance of
+5.9% YoY during Q1 2025, on positive volume effect, driven by growth of both retail and corporate loans. Interest expense decreased on an annual basis given the adjustment of funding costs to lower interest rates. Net fees and commissions registered strong advance, up +29% YoY, given higher revenues from cards, custody, transfers and lending activities, including also an one-off income related to transaction fees, being tempered by the SRT related cost. Other banking income remained quasi-flattish (-1.2% YoY) given offsetting components: higher revenues from foreign exchange counterbalanced by lower results from derivatives and other instruments held for trading on a base effect.
Operating expenses were up by +8.3 YoY in Q1 2025, reflecting persisting inflation context and high labor market competitiveness. Staff costs increased by 8% YoY, given higher salaries and other benefits adjustments. Other costs (excluding tax on turnover and cumulated contribution to deposit and guarantee fund) increased primarily linked to IT&C and consulting services. For 2025, the cumulated contribution to Deposit Guarantee Fund and Resolution Fund increased to RON 49.6 million, from RON 43.1 million in Q1 2024. The 2% tax on turnover amounted to RON 32.4 million for Q1 2025 vs RON 30.4 million in Q1 2024, given higher revenues during the analysed period.
BRD Group gross operating income reached RON 507 million in Q1 2025 (+11.3% YoY) whereas cost to income ratio improved to 53.1% in Q1 2025 from 53.8% in Q1 2024. Excluding the tax on turnover and the cumulated contributions to deposit and guarantee fund, C/I would stand at 45.5% in Q1 2025 (vs. 46.3% in Q1 2024), -81 bps y/y.
The quality of the loan book quality remained solid during Q1 2025, with NPL ratio1 around record low level, reaching 2.2% at March 2025 end (below the banking system average, of 2.5% as of February 2025 end), while NPL coverage stands at a comfortable level (77.8% at March 2025 end). Net cost of risk evolution confirms the normalization trend, with RON 79 million net provision allocation during Q1 2025 (vs RON 54 million in Q1 2024), linked to commercial advance on retail, while corporate continues to benefit from NPL recoveries.
BRD Group net result amounted to RON 350 million, +7.2% YoY, while ROE reached 14.5% in Q1 2025, same as for Q1 2024.
BRD standalone capital adequacy ratio is at comfortable level, at 23% as of March 2025 end, excluding the impact of the new regulatory temporary treatments (valid until 1st of January 2026).
BRD Group financial results for the quarter ended March 31, 2025 are available to the public and investors on the website of the bank, www.brd.ro, beginning with 9h00. Copies of the documents can also be obtained upon request, free of charge, at the head office of BRD-Groupe Société Générale, located at 1-7, Ion Mihalache Bd., 1st district, Bucharest.
Notes:
1 NPL ratio, NPL coverage ratio (acc to EBA), at Bank level
If not stated otherwise, all variations are vs. Q1 2024 (for income statement related items) or March 2024 end (for balance sheet related items).
BRD – Groupe Société Générale operates a network of 358 units. Total assets of the Bank at March 2025 end amounted to RON 85.6 billion.
BRD is part of the Société Générale Group, one of Europe’s leading financial services groups and a major player in the economy for over 160 years. The group has more around 119,000 employees in 62 countries and more than 26 million customers worldwide and is built on three complementary business lines, embedding ESG offerings for all its clients:
- French Retail, Private Banking and Insurance
- Global Banking and Investor Solutions
- Mobility, International Retail Banking and Financial Services
02.05.2025 / Editor, Andreea Dragan
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