Banks in Romania increase profits by a third in first half

The cumulated net profits of the banks in Romania, without deducting the losses, increased by 33% in the first half of 2018, reaching RON 3.6 billion (EUR 774 million), according to data from Romania’s National Bank (BNR).

The higher profits mainly came from higher lending activity and the banks’ efforts to clean their portfolios, local Mediafax reported.

The total assets of the local banks went up by 9% between June 2017 and end-June 2018, reaching RON 434.6 billion (EUR 93.5 billion). The return on assets (ROA) reached 1.66% at end-June 2018 and the return on equity (ROE) reached 15.71%. Meanwhile, the non-performing loans ratio went down to 5.71% at the end of the first semester.

The first half of this year also brought a historic change in the local banks’ ranking, as Banca Transilvania surpassed BCR as the biggest banking group in Romania, after taking over Bancpost.

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(photo source: Pexels.com)

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