Solid performance and no surprises from BRD in Q1 2024

BRD’s reported net income came to RON 324 mln in the first quarter, down by
4% y-o-y due to higher cost of risk and new levy tax.
 NII was up by 6.8% yearly thanks to positive volume effect, while the impact of
interest rates reversed, given lower interest rates as compared to Q1 2023,
therefore the NIM slightly decreased to 3.4%.
 Operating expenses were also up by ca. 5% q-o-q due to levy tax and 4.2% yo-y. Beside the levy tax the PEREX also increased substantially (+9.3% y-o-y).
 Provisioning was a negative contributor to earnings, reflecting a closer to
“through the cycle” level, but asset quality stayed benign, NPE ratio increased
a little bit to 2.1% and coverage was basically unchanged at 76%.
 Loan portfolio grew by +12% on a yearly basis, with a strong contribution from
all business segments.
 Total adequacy was strong at 24.1%, including retained earnings or ca. 50%
of net profit.
 Overall, the results are mainly in line with the budget of BRD Group.