BRD - Groupe Société Générale S.A.

INTERIM FINANCIAL STATEMENTS

SEPTEMBER 30, 2023

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE STATEMENT OF FINANCIAL POSITION

for the period ended September 30, 2023

(Amounts in thousands RON)

Group

Bank

Unaudited (*)

Unaudited (*)

Note

September 30,

December 31,

September 30,

December 31,

2023

2022

2023

2022

ASSETS

Cash and due from Central Bank

4, 34

Due from banks

5

Derivatives and other financial instruments held for trading

6

Financial assets at fair value through profit and loss

7

Financial assets at fair value through other comprehensive income

8

Financial assets at amortised cost

9

Loans and advances to customers

9.1

Treasury bills at amortised cost

9.2

Finance lease receivables

10

Investments in subsidiaries, associates and joint ventures

Property, plant and equipment

11

Investment property

11

Goodwill

12

Intangible assets

13

Current tax asset

22

Deferred tax asset

22

Other assets

14

Non-current assets held for sale

Total assets

9,526,864

7,625,002

9,526,786

7,624,933

5,861,281

7,220,963

5,846,068

7,204,987

1,705,971

2,343,377

1,684,935

2,337,311

12,863

14,262

11,398

8,132

13,204,542

13,439,596

13,204,542

13,439,596

44,908,944

39,019,048

44,223,968

38,272,985

39,673,660

36,288,342

38,988,684

35,542,279

5,235,284

2,730,706

5,235,284

2,730,706

1,650,627

1,407,394

-

-

86,345

113,670

115,744

129,964

1,040,932

1,063,863

1,017,927

1,046,443

14,873

15,503

14,873

15,503

50,130

50,130

50,130

50,130

456,244

407,487

454,424

405,667

-

23,563

-

23,563

382,613

496,034

375,132

478,893

573,724

590,963

469,598

473,958

8,633

10,912

8,633

10,912

79,484,586

73,841,767

77,004,158

71,522,977

LIABILITIES AND SHAREHOLDERS' EQUITY

Due to banks

15

Derivatives and other financial instruments held for trading

6

Due to customers

16

Borrowed funds

17

Subordinated debts

18

Current tax liability

22

Provisions

19

Other liabilities

20

Total liabilities

1,143,307

636,888

1,143,307

636,888

774,104

1,443,546

774,104

1,443,546

60,584,823

56,660,841

60,812,603

56,915,740

5,768,832

5,625,488

3,587,227

3,567,262

1,245,495

1,238,651

1,245,495

1,238,651

91,274

5,595

90,426

-

345,976

393,452

332,853

380,172

815,261

877,540

713,605

763,682

70,769,072

66,882,001

68,699,620

64,945,941

Share capital

21

2,515,622

2,515,622

2,515,622

2,515,622

Other reserves

(1,517,882)

(2,054,109)

(1,517,882)

(2,054,109)

Retained earnings and capital reserves

7,653,537

6,439,441

7,306,798

6,115,523

Non-controlling interest

64,237

58,812

-

-

Total equity

8,715,514

6,959,766

8,304,538

6,577,036

Total liabilities and equity

79,484,586

73,841,767

77,004,158

71,522,977

The financial statements have been authorized by the Group's management on November 2, 2023 and are signed on the Group's behalf by:

Giovanni Luca Soma

Etienne Loulergue

Chairman of the Board of

Deputy Chief Executive Officer

Directors

Simona Prodan

Finance Executive Director

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

1

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE PROFIT OR LOSS

for the period ended September 30, 2023

(Amounts in thousands RON)

Group

Bank

Unaudited (*)

Unaudited (*)

Nine months ended

Nine months ended

Nine months ended

Nine months ended

Note

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

Interest and similar income

23

Interest and similar expense

24

Net interest income

Fees and commission income

25

Fees and commission expense

25

Fees and commissions, net

Gain on derivative, other financial instruments held for trading and foreign exchange

26

Gain from financial instruments at fair value through other comprehensive income

Gain from financial instruments at fair value through profit and loss

Net (loss)/Income from associates and joint ventures

Other income/(expense) from banking activities

27

Net banking income

Personnel expenses

29

Depreciation, amortization and impairment on tangible and intangible assets

30

Contribution to Guarantee Scheme and Resolution Fund

28

Other operating expenses

31

Total operating expenses

Gross operating profit

3,073,438

2,050,608

2,930,593

1,939,067

(1,063,727)

(326,218)

(1,020,560)

(314,073)

2,009,711

1,724,390

1,910,033

1,624,994

872,843

834,690

844,176

801,960

(309,662)

(259,347)

(303,792)

(252,571)

563,181

575,343

540,384

549,389

255,694

227,809

253,634

226,218

-

2,415

-

2,415

5,287

2,019

4,896

2,214

9,142

(1,040)

17,040

(952)

(12,150)

10,110

2,395

44,647

2,830,865

2,541,046

2,728,382

2,448,925

(706,123)

(648,981)

(672,065)

(609,892)

(184,411)

(170,557)

(180,900)

(166,450)

(68,094)

(69,171)

(68,094)

(69,171)

(431,508)

(387,218)

(411,152)

(361,980)

(1,390,136)

(1,275,927)

(1,332,211)

(1,207,493)

1,440,729

1,265,119

1,396,171

1,241,432

Cost of risk

32

Operating profit

Profit before income tax

Current tax expense

22

Deferred tax expense

Total income tax

Profit for the period

Profit attributable to equity holders of the parent

Profit attributable to non-controlling interests

35,487

(36,898)

27,889

(44,744)

1,476,216

1,228,221

1,424,060

1,196,688

1,476,216

1,228,221

1,424,060

1,196,688

(238,023)

(210,529)

(231,162)

(197,402)

(11,283)

(2,114)

(1,623)

(1,579)

(249,306)

(212,643)

(232,785)

(198,981)

1,226,910

1,015,578

1,191,275

997,707

1,214,094

1,004,744

-

-

12,816

10,834

-

-

Basic earnings per share (in RON)

33

1.7421

1.4417

1.7094

1.4316

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

2

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE STATEMENT OF COMPREHENSIVE INCOME

for the period ended September 30, 2023

(Amounts in thousands RON)

Group

Bank

Unaudited (*)

Unaudited (*)

September 30,

September 30,

September 30,

September 30,

2023

2022

2023

2022

Profit for the period

1,226,910

1,015,578

1,191,275

997,707

Other comprehensive income

Net comprehensive income that may be reclassified to profit and loss in subsequent

periods

536,227

(1,998,008)

536,227

(1,998,008)

Net gain/(loss) on financial assets at fair value through other comprehensive income

536,227

(1,998,008)

536,227

(1,998,008)

Reclassifications to profit and loss during the period

6

(2,971)

6

(2,971)

Revaluation differences

638,359

(2,375,501)

638,359

(2,375,501)

Income tax

(102,138)

380,464

(102,138)

380,464

Other comprehensive income for the period, net of tax

536,227

(1,998,008)

536,227

(1,998,008)

Total comprehensive income for the period, net of tax

1,763,137

(982,430)

1,727,502

(1,000,301)

Attributable to:

Equity holders of the parent

1,750,321

(993,264)

Non-controlling interest

12,816

10,834

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

3

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

for the period ended September 30, 2023

(Amounts in thousands RON)

Group

Attributable to equity holders of the parent

Other reserves

Reserves from financial

Reserves from

Non-controlling

Total equity

assets at fair value

Retained earnings

interest

Issued capital

defined pension

through other

and capital reserves

plan

comprehensive income

December 31, 2021

2,515,622

(401,602)

16,222

7,690,955

57,708

9,878,905

Total comprehensive income

-

(1,998,008)

-

1,004,744

10,834

(982,430)

Net Profit for the period

-

-

-

1,004,744

10,834

1,015,578

Other comprehensive income

-

(1,998,008)

-

-

-

(1,998,008)

Equity dividends

-

-

-

(2,579,511)

(7,977)

(2,587,488)

September 30, 2022

2,515,622

(2,399,610)

16,222

6,116,182

60,566

6,308,982

Attributable to equity holders of the parent

Other reserves

Reserves from financial

Reserves from

Non-controlling

assets at fair value

Retained earnings

interest

Issued capital

defined pension

Total equity

through other

and capital reserves

plan

comprehensive income

December 31, 2022

2,515,622

(2,084,244)

30,135

6,439,441

58,812

6,959,766

Total comprehensive income

-

536,227

-

1,214,094

12,816

1,763,137

Net Profit for the period

-

-

-

1,214,094

12,816

1,226,910

Other comprehensive income

-

536,227

-

-

-

536,227

Equity dividends

-

-

-

-

(7,391)

(7,391)

September 30, 2023

2,515,622

(1,548,017)

30,135

7,653,537

64,237

8,715,514

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

4

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE STATEMENT OF CHANGES IN EQUITY

for the period ended September 30, 2023

(Amounts in thousands RON)

Bank

Other reserves

Reserves from financial

Reserves from

Retained earnings and

Issued capital

assets at fair value

Total equity

defined pension

capital reserves

through other

plan

comprehensive income

December 31, 2021

2,515,622

(401,602)

16,222

7,409,095

9,539,338

Total comprehensive income

-

(1,998,008)

-

997,707

(1,000,301)

Net Profit for the period

-

-

-

997,707

997,707

Other comprehensive income

-

(1,998,008)

-

-

(1,998,008)

Equity dividends

-

-

-

(2,579,511)

(2,579,511)

September 30, 2022

2,515,622

(2,399,610)

16,222

5,827,291

5,959,525

Other reserves

Reserves from financial

Reserves from

assets at fair value

Retained earnings and

Issued capital

defined pension

Total equity

through other

capital reserves

plan

comprehensive income

December 31, 2022

2,515,622

(2,084,244)

30,135

6,115,523

6,577,036

Total comprehensive income

-

536,227

-

1,191,275

1,727,502

Net Profit for the period

-

-

-

1,191,275

1,191,275

Other comprehensive income

-

536,227

-

-

536,227

September 30, 2023

2,515,622

(1,548,017)

30,135

7,306,798

8,304,538

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

5

BRD - Groupe Société Générale S.A.

CONSOLIDATED AND SEPARATE STATEMENT OF CASH FLOWS

for the year ended September 30, 2023

(Amounts in thousands RON)

Note

Cash flows from operating activities

Profit before tax

Adjustments for:

Depreciation and amortization expense

30

Loss from reevaluation of investment in associates and joint ventures

(Gain) from revaluation of assets at fair value through profit and loss

7

Net loss sale from associates

27

Impairment adjustments and provisions

34

Adjusted profit

Changes in operating assets and liabilities

Due from Central Bank

Deposits with banks

Treasury bills at amortised cost

Sales of financial assets at fair value through profit and loss

7

Acquisition of financial assets at fair value through profit and loss

Financial assets at fair value through other comprehensive income

Loans and advances to customers

Lease receivables

Other assets including trading

Due to banks

Due to customers

Other liabilities

Total changes in operating assets and liabilities

Income tax paid

Cash flow from operating activities

Investing activities

Sales of investments in associates

Acquisition of investments in associates and joint ventures

Acquisition of tangible and intangible assets

11, 13

Proceeds from sale of tangible and intangible assets

Cash flow from investing activities

Financing activities

Proceeds from borrowings

Repayment of borrowings

Repayment of principal lease liabilities

Dividends paid

Net cash from financing activities

Net movements in cash and cash equivalents

Cash and cash equivalents at beginning of the period

34

Cash and cash equivalents at the end of the period

34

Group

Bank

Unaudited (*)

Unaudited (*)

Nine months ended

Nine months ended

Nine months ended

Nine months ended

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

1,476,216

1,228,220

1,424,060

1,196,687

184,411

170,557

180,900

166,450

7,897

9,805

-

9,629

(3,654)

(649)

(3,266)

(844)

5,646

-

438

-

90,348

161,653

78,341

154,071

1,760,864

1,569,586

1,680,473

1,525,993

537,836

279,562

537,845

279,595

(625,642)

(12,517)

(626,418)

(13,313)

(2,504,578)

(1,398,025)

(2,504,578)

(1,398,025)

5,053

-

-

-

-

(6,143)

-

-

771,281

3,786,588

771,281

3,786,588

(3,435,022)

(3,409,489)

(3,486,437)

(3,440,246)

(242,319)

(152,022)

-

-

731,274

24,645

737,741

72,149

506,419

578,643

506,419

578,643

3,923,982

2,474,674

3,896,863

2,398,658

(758,864)

374,514

(741,315)

353,401

(1,090,580)

2,540,430

(908,599)

2,617,450

(128,780)

(233,379)

(117,172)

(220,169)

541,504

3,876,637

654,702

3,923,274

13,782

-

13,782

-

-

(9,886)

-

(9,800)

(193,270)

(78,719)

(192,447)

(78,021)

10,849

868

10,849

868

(168,639)

(87,737)

(167,816)

(86,953)

1,069,134

184,479,675

198,401

183,746,507

(918,950)

(182,115,142)

(171,592)

(181,440,506)

(61,287)

(65,546)

(59,333)

(62,450)

(7,391)

(2,587,493)

-

(2,579,511)

81,506

(288,506)

(32,524)

(335,960)

454,371

3,500,394

454,362

3,500,361

8,999,681

6,301,478

8,999,611

6,301,445

9,454,052

9,801,872

9,453,973

9,801,806

Additional information on operational cash flows from interest and dividends:

Group

Bank

Unaudited (*)

Unaudited (*)

Nine months ended

Nine months ended

Nine months ended

Nine months ended

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

Interests paid

854,269

275,568

909,128

264,399

Interests received

3,021,341

2,120,270

2,787,505

2,008,955

Dividends received

29,156

8,677

39,715

45,894

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

6

BRD - Groupe Société Générale S.A.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

as of and for the period ended September 30, 2023

(Amounts in thousands RON)

1. Corporate information

BRD - Groupe Société Générale (the "Bank" or "BRD") is a joint stock company incorporated in Romania. The Bank commenced business as a state owned credit institution in 1990 by acquiring assets and liabilities of the former Banca de Investitii. The Bank headquarters and registered office is 1-7 Ion Mihalache Blvd, Bucharest.

BRD together with its subsidiaries (the "Group') offers a wide range of banking and financial services to corporates and individuals, as allowed by law. The Group accepts deposits from the public and grants loans and leases, carries out funds transfer in Romania and abroad, exchanges currencies and provides other financial services for its commercial and retail customers.

The ultimate parent is Société Générale S.A. as at September 30, 2023 (the "Parent" or "SG").

The Bank has as at September 30, 2023 432 units throughout the country (December 31, 2022: 460).

The average number of active employees of the Group during the first three quarters of 2023 was 6,067 (2022: 6,158), and the number of active employees of the Group as of the period-end was 6,050 (December 31, 2022: 6,126).

The average number of active employees of the Bank during the first three quarters of 2023 was 5,807 (2022: 5,846), and the number of active employees of the Bank as of the period-end was 5,823 (December 31, 2022: 5,833).

The active employees are the full time employees (excluding maternity leave and long-term sick leave).

BRD - Groupe Société Générale has been quoted on Bucharest Stock Exchange ("BVB") since January 15, 2001.

The shareholding structure of the Bank is as follows:

Unaudited (*)

September 30,2023

December 31,2022

Societe Generale

60.17%

60.17%

Fondul De Pensii Administrat Privat NN

5.56%

5.56%

Fondul de pensii administrat privat AZT Viitorul Tau

3.99%

3.98%

Infinity Capital Investments SA

3.95%

3.95%

Fondul de pensii administrat privat Metropolitan Life

3.32%

3.23%

Transilvania Investments Alliance S.A.

2.03%

2.19%

Legal entities

15.32%

15.43%

Individuals

5.65%

5.49%

Total

100.00%

100.00%

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

7

BRD - Groupe Société Générale S.A.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

as of and for the period ended September 30, 2023

(Amounts in thousands RON)

2. Basis of preparation

a) Basis of preparation

The separate interim financial statements as at September 30, 2023 are of the Bank BRD - Groupe Société Générale. The consolidated and separate interim financial statements as at September 30, 2023 and September 30, 2022 are not audited nor reviewed (references included in the financial statements and selected explanatory notes).

The interim financial statements for the nine months ended September 30, 2023 has been prepared in accordance with IAS 34 Interim Financial Reporting.

The interim financial statements does not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for the year ended December 31, 2022. In accordance with European Regulation 1606/2002 of July 19, 2002 on the application of International Accounting Standards and Order of the National Bank of Romania Governor no. 27/2010, as amended, BRD prepared consolidated and separate financial statements for the year ended December 31, 2022 in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union ("EU").

The consolidated financial statements include the consolidated statement of financial position, the consolidated profit or loss, the consolidated statement of comprehensive income, the consolidated statement of changes in shareholders' equity, the consolidated cash flow statement and consolidated notes.

The separate financial statements include the separate statement of financial position, the separate profit or loss, the separate statement of comprehensive income, the separate statement of changes in shareholders' equity, the separate cash flow statement and separate notes.

The consolidated and separate financial statements are presented in Romanian lei ("RON"), which is the Group's and its subsidiaries' functional and presentation currency, rounded to the nearest thousand, except when otherwise indicated. The consolidated and separate financial statements have been prepared on a historical cost basis, except for financial assets at fair value through profit and loss, financial assets through other comprehensive income, derivative financial instruments, other financial assets and liabilities held for trading, which have all been measured at fair value.

The Bank's management has made an assessment of the Bank's ability to continue as a going concern and is satisfied that the Bank has the resources to continue in business for the foreseeable future. Furthermore, management is not aware of any material uncertainties that may cast significant doubt upon the Bank's ability to continue as a going concern. Therefore, the consolidated and separate financial statements are prepared on the going concern basis.

b) Basis for consolidation

The consolidated interim financial statements comprise the financial statements of BRD - Groupe Société Générale and its subsidiaries as at September 30, 2023. The financial statements of the subsidiaries are prepared for the same reporting period, using consistent accounting policies.

A subsidiary is an entity over which the Bank exercises control. An investor controls an investee when it is exposed, or has rights to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. The consolidated financial statements include the financial statements of BRD - Groupe Société Générale S.A. and the following subsidiaries: BRD Sogelease IFN S.A. (99.98% ownership, 2022: 99.98%), BRD Finance IFN S.A (49% ownership, 2022: 49%) and BRD Asset Management SAI S.A. (99.98% ownership, 2022: 99.98%).

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

8

BRD - Groupe Société Générale S.A.

NOTES TO THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS

as of and for the period ended September 30, 2023

(Amounts in thousands RON)

2. Basis of preparation

b) Basis for consolidation (continued)

According to IFRS 12 9(b), the Group controls BRD Finance IFN S.A even though it holds less than half of the voting rights, through the power to govern the financial and operating policies of the entity under various agreements. All intercompany transactions, balances and unrealized gains and losses on transactions between consolidated entities are eliminated on consolidation.

Subsidiaries are fully consolidated from the date of acquisition, being the date on which the Bank obtains control, and continue to be consolidated until the date such control ceases.

Equity and net income attributable to non-controlling interest are shown separately in the statement of financial position, statement of comprehensive income, statement of changes in equity and statement of comprehensive income, respectively.

The Bank is accounting the investments in subsidiaries, associates and joint ventures in the separate financial statements at cost less impairment adjustment.

Group

Associates

Field of activity

Address

%

ALD Automotive SRL

Operational leasing

1-7, Ion Mihalache Street, floor 3, district 1, Bucharest

20.00%

BRD Asigurari de Viata SA

Insurance

58-60 Gheorghe Polizu Street, Bucharest Corporate Center building, floor 8

49.00%

(zone 3) and floor 9, district 1, Bucharest

Biroul de Credit S.A.

Financial institution

29 Sfanta Vineri Street, floor 4, district 3, Bucharest

16.38%

BRD Societate de Administrare a Fondurilor de

Pension fund management

58-60 Gheorghe Polizu Street, floor 8 (zone 1, 2 and 4), district 1, Bucharest

26.95%

Pensii Private SA

BRD Sogelease Asset Rental SRL

Operational leasing

1-7, Ion Mihalache Street, Bucharest

20.00%

Joint ventures

CIT One SA

Protection and guard

319L Splaiul Independentei Street, Paris Building/A1, 1st floor, district 6,

33.33%

Bucharest,

Bank

Field of activity

Address

%

Associates

ALD Automotive SRL

Operational leasing

1-7, Ion Mihalache Street, floor 3, district 1, Bucharest

20.00%

BRD Asigurari de Viata SA

Insurance

58-60 Gheorghe Polizu Street, Bucharest Corporate Center building, floor 8

49.00%

(zone 3) and floor 9, district 1, Bucharest

Biroul de Credit S.A.

Financial institution

29 Sfanta Vineri Street, floor 4, district 3, Bucharest

16.38%

BRD Societate de Administrare a Fondurilor de

Pension fund management

58-60 Gheorghe Polizu Street, floor 8 (zone 1, 2 and 4), district 1, Bucharest

26.95%

Pensii Private SA

Joint ventures

CIT One SA

Protection and guard

319L Splaiul Independentei Street, Paris Building/A1, 1st floor, district 6,

33.33%

Bucharest,

Subsidiaries

BRD Sogelease IFN SA

Financial lease

1-7, Ion Mihalache Street, floor 12, district 1, Bucharest

99.98%

BRD Finance IFN SA

Financial institution

1-7, Ion Mihalache Street, floor 15, district 1, Bucharest

49.00%

BRD Asset Management SAI SA

Fund administration

2 Doctor Staicovici Street, district 5, floor 5, Bucharest

99.98%

In July 2023 the Bank sold the investment in associate Fondul de Garantare a Creditului Rural and as a condition precedent to the sale the dividends accumulated over the years and for the year 2022 were distributed to the shareholders. The sale of the participation was reflected also in the statement of cash flow and in Note 27.

Additionaly, the Bank did not participate to the increase of the share capital of BRD Societate de Administrare a Fondurilor de Pensii Private from July 2023 and therefore the ownership percentage was reduced from 49% to 26.95% following the approval from ONRC in October 2023.

The accompanying notes are an integral part of this financial statements

(*) Unaudited / unreviewed by the financial auditor

9

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BRD - Groupe Société Générale SA published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 08:02:48 UTC.