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Romania: BRD Group Societe General with High Expectations

Published: April 23, 2014; 17:26 · (FriedlNews)

The Romanian lender intends to increase its lending by four percent in 2014.

BRD expects to return to profit this year. / Picture: © BRD Groupe Société Générale

BRD Groupe Societe Generale intends to boost its lending activity considerably with the aid of increased demand from the corporate sector as lending the retail area is still modest, according to the budget approved for this year during the annual general meeting, which took place last week.

BRD expects lending to increase 4 percent to RON 28.9bn (€ 6.4bn) this year. However, deposits are expected to decline 3.6 percent to RON 34.8bn (€ 7.8bn) because of decreasing demand of the corporate sector. Moreover, the lender expects a deterioration of the overall banking income because of lower interest yields.

The costs for risk provision, on the other hand, are expected to “significantly improve”. After reporting total losses of RON 716m (€ 160m) in the past two years the bank expects to return to profit this year.