BRD - A Bunch Of Exceptional Numbers
BRD- Instant Earnings Comment
Recommendation: Buy (unch)
Target price (12M): RON 16.2 (unch)
- BRD FY net income came to RON 1,557.3 mln or EPS of 2.23 RON (20.7% ROE), implying a Q4 net profit of RON 423 mln.
- NII expanded 2.9% q-o-q and up 16.1% y-o-y on the back of still very strong margins (3.9% in Q4) and vivid volumes. Net F&C remained flat q-o-q but up 8.6% y-o-y on elevated transactional activity.
- Risk cost was again a positive contributor to earnings to the tune of RON 61 mln resulting in a FY earnings contribution of RON 230 mln, or +80bps on loans (vs. 120 bps positive in 2017).
- OPEX in Q4 were up on a quarterly comparison while y-o-y development was a decline of 6.1% y-o-y. Cost-to-income remained under control thanks to significantly higher operating income (+14.6% y-o-y).
- Net loans were up q-o-q by 1.0% and also increased 4.7% y-o-y thanks to solid demand of housing loans (+4.6%) and unsecured lending (+7%) while corporates were also strong.
Concorde Securities Ltd. is Hungary’s leading independent company engaged in investment banking activities. It provides its clients with integrated financial services, including securities trading, research, corporate financing advisory, capital market transactions, wealth management and investment advisory. The operational management of the company is the responsibility of the CEO, while the owners/managers (who control one-third of the company through their shares and options) are in charge of its strategic governance. Concorde Securities Ltd. is a member of the Budapest, Frankfurt, Warsaw and Bucharest stock exchanges, as well as of the Hungarian Association of Investment Service Providers.
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