BCR Reports Improved Financial Performance in H1 2025
BCR Group experienced a net profit surge of 12% in the initial half of 2025, reaching an impressive EUR 294 million.
BCR, Romania's leading bank and a subsidiary of Banco Santander, has announced a significant improvement in its financial performance for the first half of 2025. The bank's net fee and commission income increased by 4.3% to RON 548 million (EUR 109 million), while the net interest income rose by 12.9% to RON 2,370 million (EUR 474 million). These improvements led to a net profit of RON 1,473 million (EUR 294 million) for the bank, an increase of 12.0% compared to H1 2024.
Sergiu Manea, CEO of BCR, attributed the bank's success to a focus on responsible financing, secure digital infrastructure, and supporting the economy. The bank approved new corporate loans of RON 7.5 billion in H1 2025, with approximately 42% earmarked for investments in the corporate banking business. Additionally, BCR generated total new loans to individuals and micro businesses of RON 9 billion in the retail banking business.
The operating income increased by 10.8% to RON 3,215 million (EUR 643 million) in H1 2025, driven by all three major income components. The net trading & FV result increased by 9.0% to RON 276 million (EUR 55 million), although the cause for this increase was not specified. The net interest income increase was due to higher business volumes.
However, the improvement in the operating result was partly offset by an increase in operating expenses. The general administrative expenses reached RON 1,131 million (EUR 226 million) in H1 2025, an increase of 8.7% compared to H1 2024. The increase was due to higher IT costs and personnel expenses. Despite this, the cost-income ratio improved to 35.2% in H1 2025, down from 35.9% in H1 2024.
The bank's retail banking business also saw some changes. The stock of standard mortgage loans (Casa Mea) in local currency increased by 19.4% year-on-year, while the stock of unsecured consumer loans (including credit cards and overdrafts) increased by 27.5% year-on-year. However, the Prima Casă loan portfolio was impacted by declining demand in the retail banking business.
Credit quality also improved, with the cost of risk dropping by 7 basis points to 1.14%, the ratio of doubtful loans falling to 2.91%, and coverage increasing to 67%. These improvements led to a tangible equity return of 16.0%, a significant increase from 15.1%, and an efficiency ratio of 41.5%, the best in 15 years.
The positive change at BCR was driven by increases in net commissions, stable net interest income despite challenging conditions, operational cost control leading to slight expense reductions, and enhanced credit quality which reduced risk costs. These factors contributed to higher profitability and improved capital returns for BCR in H1 2025 compared to H1 2024.
These impressive results are reflected in Banco Santander's overall performance, with the parent company reporting a record profit attributable to the parent of EUR 6.83 billion in H1 2025, a 13% increase year-on-year (18% at constant exchange rates). Net operating income was EUR 18,145 million, nearly flat compared to H1 2024, but rose 5% in constant euros. This was supported by good performance in net interest income and a 3% increase in net fee income in statutory terms, which compensated for a 4% decline in net interest income year-on-year. Operating expenses decreased by 1%, helping to maintain stable total income.
Sources: [1] Banco Santander's H1 2025 Results Announcement
The improved financial performance of BCR in H1 2025 significantly contributed to Banco Santander's overall business success, with net profit increasing by 13% year-on-year. This advancement in the finance sector stems from increased net fee and commission income, stable net interest income, operational cost control, and enhanced credit quality within BCR's industry.
