Romanian banks rake in EUR 1 bln in profits in the first half of 2022

Romanian banks recorded combined net profits of almost RON 5 bln (EUR 1 bln) in the first half of 2022, up 14% compared with the same period of last year, according to data from Romania’s National Bank (BNR).

This is the best H1 result for local banks in recent years and was driven by higher interest rates, according to Ziarul Financiar. The ROBOR interest rate for 3-month interbank loans climbed to an average of 4.6% in the first half of 2022, compared with 1.6% in the same period of 2021. The ROBOR rate is used as a reference for several types of loans in Romania, especially corporate ones.

The surging annual inflation rate, which passed 15% in June, pushed up bank interest rates. The central bank also increased its monetary policy rate in several steps to 5.5% at the moment.

Despite the increase in interest rates, the local banks granted more loans to local companies and individuals. The volume of loans granted to the private sector (companies and households) reached RON 352 bln (EUR 71.4 bln) in June 2022, up 17.5% year-on-year, which is the highest growth rate since 2009.

The big banks reported impressive profits in the first half. While Banca Transilvania, the biggest lender in Romania, is expected to announce its results later this week, second-ranked BCR already reported that its net profit went up by 51% in the first half to over RON 1 bln. BRD-Societe Generale also posted a net profit of RON 617 mln, down 2% versus H1 2021.

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