The company is basing its outlook on a RON 29.7 (€8.8) per share price in six months, 16.3 percent higher than the current RON 25.6 (€7.6) per share. The rise is likely to bring the bank’s capitalization to some €6.17 billion, from its current €5.3 bln. BRD shares have also risen in the past six months, although the increase was slightly lower, at 13 percent.
BRD shares have provided investors with a 38.3 percent yield since the beginning of the year. BRD is the second largest company listed on the Bucharest Stock Exchange (BVB), following oil giant Petrom, with €8.4 bln in market capitalization.
Fortius Finance analyst Florin
Ciobuz told Business Standard that “the main factors for the basis of the analysis are market growth potential and BRD maintaining its market share. I think the bank will focus more on increasing its efficiency.”
The brokerage agency foresees a rise in BRD/SG’s profits to €382 mln by 2009,
double the €186 mln profits in 2006.
The bank posted €79.4 mln in net profits in Q2 2007 (last financial results made public), 50.6 percent higher year-on-year, due to an increase in loan volume.
BRD’s financial results have improved significantly in the past three years, with an average annual increase of 24.3 percent in net banking income in 2004-2006. By the end of 2006, the bank claimed a 22.7 percent market share in retail banking loans and a 16.7 percent market share in the corporate sector.
Estimates
Brokerage agency Fortius Finance foresees a rise in BRD/SG’s profits to €382 mln by 2009, double the €186 mln profits in 2006.
