The amount of loans granted by non-banking financial institutions (NBFIs) in Romania reached a record level of over lei 41 billion mid-2022, after a 9.2% advance in the first six months of this year (compared to the same period in 2021), according to the latest KeysFin analysis. In the post-pandemic year, the loans granted by the NBFIs registered in the General Registry increased by 8.1% to lei 38 billion.
As share of the total, the NBFIs included in the multiple lending activities category granted almost 98% of the total loans, whereas the institutions included in the financial leasing category lent only 1.9% of the total, according to the data at the end of June 2022, published by the National Bank of Romania (NBR).
Unlike the banking sector, NBFIs mainly lend to non-financial companies, with 76% of the total portfolio, compared to 47% of the total of the banking sector in 2021. Of the portfolio of loans granted by NBFIs to non-financial companies, 85% are directed towards SMEs, according to NBR data.
Loans granted by NBFIs: Household in Lei, companies in Euro
Over 90% of the loans granted by NBFIs to households were in lei, 9% of the total were in euro and 0.9% of loans in other currencies, according to data from the end of June 2022.
“Compared to the end of last year, we note a 0.4% increase in the share of loans granted to the population in euro, and at the same time, a 0.3% decrease in the share of loans in lei. At the other end, 81% of the loans granted by NBFIs to non-financial companies were in euro, followed by those in lei, with a share of 19% of the total, according to NBR data.
From the maturity perspective, we observe that 68% of the portfolio of loans in euro granted by local NBFIs to non-financial companies had a maturity between 1 and 5 years, 28.6% had a maturity of more than 5 years, and 3.5% of less than a year”, said Diana Florescu, KeysFin economic analyst, one of the most important providers of business information solutions in Romania.
The largest NBFIS in Romania
UNICREDIT LEASING CORPORATION IFN SA was the largest NBFI in Romania by total assets, of lei 5.3 billion, which represented 12.4% of the total in 2021. BCR LEASING IFN SA ranked second with total assets of lei 3 billion, or 7% of the total, followed by BNP PARIBAS LEASING SOLUTIONS IFN SA, which recorded the largest nominal increase, of lei 638 million and the largest percentage advance, of 36.5% in top 10, to lei 2.4 billion in 2021, according to data from the Ministry of Public Finance analysed by KeysFin specialists.
From the Net Result perspective, the FONDUL NATIONAL DE GARANTARE A CREDITELOR PENTRU INTREPRINDERILE MICI SI MIJLOCII SA – IFN (8th place by total assets) had the highest profit among local NBFIs, of almost lei 103 million and generated 7.7 % of the total in 2021. In second place, after the net profit recorded in 2021, there was UNICREDIT LEASING CORPORATION IFN SA with lei 101 million, followed by TBI MONEY IFN SA with lei 77.6 million in 2021.
Non-performing loans decrease and an increase of provisions in 2021
The rate of non-performing loans granted by NBFIs decreased by 0.6 percentage points (p.p.) to 3.6% in 2021, the most important adjustments being registered in households (-1 p.p.), according to BNR data. However, the rate of non-performing loans granted by NBFIs to the population was more than 2 times higher than that of bank loans to the population (7.4% compared to 3.6% in the case of bank loans) and well above the value observed in the case of NBFI loans granted to companies (2.2%) in 2021.
The overdue and doubtful claims of NBFIs decreased by 8.4% to lei 600 million, their share in the total net assets decreasing to 1.4% percent in 2021. Overdue and doubtful loans also decreased by 16%, to lei 395.6 million in 2021.
The total level of provisions related to overdue and doubtful loans granted by NBFIs increased marginally by 0.8%, to lei 2.4 billion in 2021.
*The analysis includes the results of 165 NBFIs out of the 175 included in the General Registry at the end of August 2022 (94%).