"2024 was another solid year for BRD, which continued to deliver strong commercial performance across all business segments, posting solid net loan balance growth of +19% over 2023. The corporate segment saw the highest growth of +29% YoY, while commercial performance in the retail segment picked up, driving portfolio growth of 13% YoY vs. 2023. Loan production to individual customers remained very dynamic, reaching record levels, totaling almost RON 12 billion, up 54%, driven by growth in both consumer and housing loans," a press release from the bank said.
From a financial perspective, BRD's revenue growth, supported by higher volumes across all business segments, combined with disciplined cost and risk management, led to a double-digit ROE of 16.6% and an improved cost to income ratio, excluding the impact of the new turnover tax.
”Financially, BRD's revenue growth, fueled by broad based higher volumes, combined with disciplined cost and risk management, resulted in a double-digit ROE, of 16.6% and an improved cost-to-income ratio, excluding the impact of the new turnover tax. Asset quality remains solid, while liquidity and capital levels are robust, well positioning BRD for continued growth. Looking ahead, BRD is committed to maintaining a drive for growth enabled by sustainable practices, digital innovation and simplification, ensuring to meet the ever-changing needs of its customers,” said Maria Rousseva.
The net loan balance, including lease financing, reached RON 49.7 billion, marking an increase of +19.1% since end-December 2023, supported by robust lending activity in both the corporate and retail segments.
Lending to corporates remained the main growth driver, advancing +29% y/y, while growth in the retail segment is further fueled, marking an advance of +13% y/y at end-December 2024.
Loan production for individuals reached almost RON 12 billion in 2024, up +54% y/y in 2023, building on a good performance in both consumer and housing loans.
Consumer loan production totaled RON 7.3 billion, up +49% y-o-y, while the financing of housing purchase projects for customers increased +63% y-o-y to RON 4.4 billion.
At the end of December 2024, loans to individuals increased by +12.0% year-on-year (+12.0% y-o-y) compared to the end of 2023. In addition, the balance of net loans to small companies also recorded an increase of +25.8% y/y, supported by improved lending processes and strong involvement in government programs, reinforcing BRD's role as a key growth driver for both individuals and companies.
Corporate financing maintained a strong pace of growth, with the net loan balance growing +29% YoY at end-December 2024, underpinned by solid contributions from both large corporates and SMEs. A main driver for SME financing has been the government's IMM Plus program, with BRD granting more than 2,200 loans totaling RON 3.56 billion during 2024.
Leasing activity continued its strong growth trajectory, with the balance of net financing increasing by +19.6% y/y y/y at end-December 2024 to over RON 2 billion, reconfirming financial leasing as an affordable and efficient financing solution, adding to the diversified portfolio of products offered by the bank.
