Austrian group Raiffeisen's Romanian subsidiary recorded a 17% decline in net profit in 2020 compared to 2019, to RON 644 million (EUR 132 mln).

With a loans-to-deposits ratio close to the market's average (66%), the bank managed to achieve a return on equity (ROE) ratio well above average - 14%, compared to only 8.9% for the entire Romanian banking system. Its non-performing loan (NPL) ratio is in line with the market's average - 3.8%, down compared to the end of 2019.

Still, it remains to be seen how the loan portfolio's quality will develop after the public and private bank loan repayment moratoriums expire, commented the bank's CEO Steven van Groningen.

"If the economy recovers at the rate anticipated by analysts, I believe that the risk of a significant deterioration in the loan portfolios will be greatly diminished," he said.

As regards the bank's activity in 2020, the stock of loans increased just below the market's average, by 5%, while the stock of deposits soared four times faster (by 21%). The bank's total assets increased by 20% last year to RON 51.3 bln (EUR 10.5 bln).

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andrei@romania-insider.com