The rise is mainly due to an increase in consumer loans, loans for small and medium-sized enterprises (SME), and activities in the real estate financing sector, added quoted sources. According to an analysis carried out by Business Standard editors, the crisis presently affecting SocGen is not being felt in Romania. The €5 billion in losses, reported on its €240 billion assets, will have a limited influence on SocGen’s business, according to BRD officials. “BRD is not suffering in any way from this situation, which neither affects its viability nor its continuing development strategy on the Romanian market,” according to a declaration for Business Standard by BRD’s General Manager, Patrick Gelin.

BRD officials added that the bank, within the SocGen Group, enjoys the highest rhythm of profit growth. While BRD’s ratio of profit in terms of total group profit amounts to some 5 percent, the ratio of its net profit will rise to over 35 percent following recent events. “I doubt that we will modify the traditional manner in which we distribute profit at the next General Shareholder’s Meeting. The strategy we have in Romania will not be changed in any way, even if at the consolidated level the group is having a difficult time. According to statements made by SocGen’s General Manager, Daniel Bouton, the group is forecasting net result for 2007 between €600-800 mln, and is in the process of raising its capital by €5.5 bln, already guaranteed by a bank syndication. Furthermore, two days ago, Bouton spent several hours chatting internally to employees, according to a BRD communique. “The financial solvency of Societe Generale is in no way affected, as this is a mere loss of 5 billion reported on assets of 240 billion. Also, indicators remain at levels forecast according to international standards. The quality of its performance will allow it to easily overcome the negative effects of this situation,” added bank officials.