Sound Q4 results but dividend somewhat disappoints
- BRD’s reported net income came to RON 425 mln in the fourth quarter, down by 8% q-o-q due to seasonally higher costs (+13% q-o-q) and lower Net F&C.
- NII was up by 5% quarterly thanks to lending volumes counterbalanced by partially higher amount of deposits thus this was the reason of stalling NIM at 3.5%.
- Operating expenses were also up by 13% q-o-q partially due to seasonality and 8% y-o-y. Amongst expense lines besides PEREX, other operating expenses also increased substantially (+15% y-o-y).
- Provisioning was again a positive contributor to earnings as asset quality stayed benign, NPE ratio edged down to below 2% and coverage was basically unchanged at 76%.
- Total adequacy was comfortable at 21.5%, including retained earnings or ca. 40% of net profit.
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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