A Cracking Year for BRD: A Glimpse at Their 2024 Financials
BRD Group's 2024 Financial Results: Notable and Accountable Lending, Contributing Significantly to the National Economy
BRD, the powerhouse banking entity, wrapped up another stellar year in 2024, maintaining its knack for delivering solid growth across all business sectors. The corporate sector continued to lead the charge, soaring an impressive 29% Year over Year (YoY), while the retail segment showed no signs of slowing, with a robust 13% YoY increase.
Insights from nearly 1.7 million users of the YouBRD mobile app confirmed the banking world's digital evolution, with a 20% YoY surge in users and over 28% more transactions. Sustainability remained at the forefront, with BRD's green financing reaching an astounding RON 1.8 billion in 2024, well over its initially planned target for 2025.
Net loans outstanding, including leasing financing, surged to a whopping RON 49.7 billion, marking a 19.1% YoY increase. The strong growth was attributed to both the corporate and private individual segments. The corporate financing segment, in particular, showed remarkable expansion, with large corporates and SMEs contributing significantly to the growth.
Individual loan production reached record-breaking levels of close to RON 12 billion, representing a colossal 54% YoY increase. This surge can be attributed to growth in both consumer and housing loans. BRD's relentless commitment to its customers put it firmly in the limelight as a preferred financing partner.
The deposit base continued its steady climb, increasing by 8.9% YoY. Retail deposits, a crucial stable funding source, contributed a 8.7% YoY increase, fueled by a 19% YoY increase in individual term deposits. Corporate deposits grew by 9.1% YoY, driven primarily by increased SME inflows.
BRD Asset Management maintained its throne on the UCITS market, marking a significant growth of assets under management to RON 6.2 billion, an impressive 55% YoY and ~23.1% market share.
Combining on-site and remote presence, BRD's network spanned 388 branches and an increased number of 24/7 self-service areas. The digital engagement of its clients continued to soar, underlined by the growing number of YouBRD mobile application users and the increasing number of transactions done through the application.
BRD's commitment to sustainability transitions and digital innovation enabled the bank to establish partnerships with international financial institutions. In addition, the women entrepreneurship sector remained a priority, with collaborative efforts from the Ministry of Economy, Entrepreneurship and Tourism, and the International Finance Corporation.
Financially, BRD delivered an impressive double-digit ROE (Return on Equity) of 16.6%, alongside an improved cost-to-income ratio, despite enduring competition for talent and the impact of the new revenue tax. The bank's asset quality remained solid, with liquidity and capital levels robustly positioned for continued growth.
As Maria Rousseva, CEO of BRD Groupe Société Générale, aptly put it, "2024 was again a strong year for BRD that continued to deliver high commercial performance across all its business segments, achieving solid growth in net loans outstanding, +19% compared to 2023. The corporate segment led the way with a +29% YoY increase, while commercial momentum on retail further intensified up to +13% YoY. Loan origination for individuals remained very dynamic, reaching record levels, totaling almost RON 12 billion, up by 54%, driven by volume growth on both consumer and housing loans."
All in all, 2024 proved a year of milestones for BRD, as it continued to flourish and evolve in the ever-changing financial landscape.
Sources:1. BRD Annual Report 20232. Société Générale 2024 Sustainability Annual Report3. Société Générale Sustainable Finance4. Factoring KB Annual Report 20245. Société Générale Dividend Policy
Investing in BRD's corporate segment could potentially yield significant returns, recording a 29% Year over Year (YoY) increase in 2024. For those prioritizing personal-finance, BRD's individual loan production reached record-breaking levels of close to RON 12 billion, representing a colossal 54% YoY increase.
