BRD - BRD results sound but in line with budget
BRD reported net income came to RON 220 mln in the first quarter down 8%
y-o-y and 4% q-o-q.
Yearly lower results are due to declining NII (-7% y-o-y, NIM down 60 bps y-oy) on lower yield environment, lower other income and higher other operating
expenses related to IT while Deposit Guarantee payment also increased due to
the continuous inflow. Net F&C increased 1% y-o-y thanks to higher capital
market activity and retail bond issuance.
The quarterly development of net income should be adjusted by Deposit
Guarantee payments which would result in an increase of 17% on lower
provisioning.
NPL ratio inched up somewhat to 3.3% but remaining still at low levels. Given
that Stage 2 ratio declined to 24% from 26% without major increases in nonperforming exposures, this implies a recovery which we suspect to be related
to loans under moratorium.
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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