Romanian banks’ profits down 23% in first half of 2019

The aggregated net profit of the Romanian banking system reached RON 2.77 billion (EUR 580 mln) in the first half of this year (H1), 23% lower than in the same period last year, Ziarul Financiarreported.

The banks’ profitability deteriorated in the second quarter of the year compared to both last year and the first quarter, figures indicate.

The banking system’s assets at the end of June advanced by 5.6% year on year and hit a new maximum, RON 458.8 billion (EUR 96.6 bln), as the stock of loans increased by 7.1% year on year to RON 259.6 bln (EUR 54.6 bln). Again, the figure is above the inflation but slower than the advance of the nominal GDP (expected around 10% this year), meaning that the financial intermediation has been decreasing.

The return on assets (ROA) and return on capital (ROE) calculated for January-June period (and annualised) were 1.21% and 11.28%, respectively.

The profitability ratios thus decreased from 2018, when they were 1.66% and 15.71% respectively. Furthermore, the profitability ratios were better in the first quarter of the year: 1.6% and 14.49% respectively (again, in annualised, therefore comparable, terms).

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