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Banks’ cumulative net profit in Romania – RON 5.88bn in nine months

The 35 banks in Romania obtained a cumulative net profit of almost RON 5.88 billion in the first nine months of this year, level uncompensated with losses, up by 42% as compared to the same period last year, the National Bank of Romania (BNR) informs.

Out of this total, 81% (RON 4.77 billion) was achieved by the first six banks, as a share of assets, on the market.

The Romanian banking system’s value of assets increased by 9.5% against the same period last year, up by 4% against the end of the previous year, up by 3.1% as compared to the end of the first semester, and by 2.4% as compared to the middle of this year, up to almost RON 445.2 billion, the Central Bank informs.

On September 30, 2018, the return on assets (ROA) was 1.76%, by 40 basic percentage points higher than the level at the same date in the previous year, and return on equity (ROE) was 16.35%, an increase of 3.45 percentage points.

In addition, the solvency ratio remained at around 20% at the end of the first nine months of 2018, down to 19.97%, from 20.07% at the end of the first six months, and up from 18.98% on the same date last year. This level is well above the one imposed by European standards, which is 8%, which shows that the banks in our country still have plenty of room to increase credit.

Instead, the basic rate of return on business increased by 7.13 percentage points from year to year and by 9.56 percentage points against the previous quarter, up to 188.33%.

The banking system in Romania recorded a cumulative net profit of RON 1.77 billion in Q1 and of RON 3.6 billion in H1.

 

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