Romanian major bank BRD posts 2.5% increase in net profit in H1 2026

BRD (BVB: BRD), one of the major banks present in Romania, reported a net profit of RON 784 million in the first half of the year, up 2.5%, according to the report submitted to the Bucharest Stock Exchange.

In H1 2026, BRD Group’s net banking income reached RON 2,206 million, up +1.8% year-on-year. Net interest income, which accounts for 70% of net banking income, totaled RON 1,548 million in H1 2026, up +1.4% year-on-year. 

Net fee and commission income amounted to RON 452 million, compared with RON 453 million in H1 2025, remaining broadly stable compared with the previous year. Increased customer activity and the solid contribution of custody, brokerage, asset management and off-balance-sheet commitment activities were offset by the decrease in fee income from services, amid the process of cleaning inactive accounts.

Other banking income reached RON 206 million, up +9% year-on-year, mainly reflecting higher income related to associated entities, as well as the recognition of an exceptional (“one-off”) income.

In the context of persistent double-digit inflation and the doubling of the turnover tax, operating expenses decreased by 0.5% year-on-year in H1 2026, supported by cost discipline and the absence of contributions to the Deposit Guarantee Fund and the Resolution Fund (FGDB and FR) in 2026. Personnel expenses decreased by 8.3% year-on-year, reflecting the optimization of the Group’s workforce activity and operating model.

Excluding the turnover tax and the cumulative contributions to guarantee funds related to 2025, the other categories of operating expenses increased by +3.1% year-on-year, mainly as a result of higher IT&C expenses, generated by the depreciation of previous investments and the continuation of infrastructure and digitalization projects.

The turnover tax for the January-June 2026 period doubled compared with H1 2025, reaching RON 139 million (equivalent to 4% of gross revenues), compared with RON 66 million in the same period of the previous year.

In this context, BRD Group’s gross operating profit increased by +4.2% year-on-year, to RON 1,112 million in H1 2026.

The cost/income ratio improved to 49.6%, compared with 50.7% in H1 2025. Excluding the impact of the turnover tax and other contributions related to 2025, the cost/income ratio would have stood at 43.3% in H1 2026, compared with 45.4% in H1 2025, representing an improvement of 214 basis points.

BRD's non-performing loan ratio at the bank level reached 2.7% at the end of June 2026, below the banking system average of 2.9% recorded at the end of May 2026, while the coverage ratio for non-performing loans remained at a comfortable level of 65.6%. Net cost of risk recorded a limited increase compared with the same period of the previous year, with a net allocation of provisions of RON 147 million, compared with RON 142 million in H1 2025, amid the combined effect of portfolio developments and the revision of macroeconomic outlooks.

BRD Group recorded a net profit of RON 784 million in H1 2026, up 2.5% compared with the level of RON 764 million recorded in H1 2025. Excluding the impact of the turnover tax, return on equity (ROE) stood at 17%, compared with 17.3% one year earlier.

BRD’s capital adequacy ratio, at the individual level, stood at 22% at the end of June 2026, stable compared with the end of June 2025 (excluding the impact of temporary regulatory treatments, “quick fix”).

Net outstanding loans, including leasing financing, reached RON 58.3 billion, up +11.6% year-on-year (of which financial leasing receivables increased by +1.6% year-on-year). Growth was recorded both in the corporate segment and in retail, despite persistent macroeconomic difficulties. Corporate lending was the main driver of portfolio expansion (+16.5% year-on-year), supported by strong commercial activity in the large corporate segment. Retail loans also made a solid contribution, with net loan balances increasing by +8.0%, supported by resilient demand for housing loans.

In the first half of 2026, BRD continued to expand its sustainable financing activity, with cumulative production of EUR 2.63 billion since 2021, of which EUR 304 million was granted in H1 2026. At the same time, the bank assumed important roles in structuring sustainable financing, both independently and together with Societe Generale.

The total deposit base reached RON 73.7 billion, up +4.1% year-on-year, amid higher inflows from individual customers. Retail deposits, a stable and diversified source of financing, increased by +7.4% year-on-year, due to attracting a higher volume from individual customers. Corporate deposits recorded a decrease of -1.1% year-on-year, mainly reflecting balance sheet adjustments to liquidity conditions, market conditions, and the fluctuating financing needs of large companies.

radu@romania-insider.com

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