Romanian banks post among highest quarterly earnings ever in Q1

The aggregate net profits of the Romania banking system increased to RON 1.95 bln (EUR 395 mln) in the first quarter of this year (Q1), 3.6% more compared to the same quarter of 2021 and among the highest quarterly aggregate earnings ever, according to calculations based on the datapublished by the National Bank of Romania (BNR).

The cumulated profits of the three largest banks in Romania - Banca Transilvania, BCR and BRD - exceeded RON 1 bln in Q1, half of the profit of the entire banking system, according to a Ziarul Financiar analysis.

Banca Transilvania, the largest bank by assets on the local market, reported a net profit of RON 307.5 mln (down 47% YoY), BCR group’s profit rose by 12.5% YoY to RON 477.5 mln, and BRD-SocGen, the third bank by assets, had a net profit of RON 246 mln, 12.6% more compared to Q1, 2021.

The banking system’s annualised return on assets was 1.22% in Q1, compared to 1.33% in Q1, 2021, and 1.36% in the whole of 2021.

The annualised return on equity (12.9%) was slightly stronger compared to Q1 2021 (12.2%) but, again, not as high as in the whole of 2021- which was the best year for the Romanian banking system since 2018 in terms of profitability rates (and the best ever in terms of nominal earnings).

The slightly higher earnings occurred amid 11.6% larger assets (RON 642 bln, or EUR 130 bln) of the banking system at the end of March compared to the same time last year.

Regarding the quality of the banking system’s portfolio, the non-performing loans ratio (NPL) decreased to 3.3% at the end of March this year - the lowest level since the ratio was calculated for the first time in Q3, 2014.

(Photo: Octav Ganea/ Inquam Photos)