Romanian banks’ record profits in Q3 confirmed by official data

The aggregated net profits of Romanian banks reached RON 2.23 billion (EUR 470 million) in the third quarter of this year, the second-highest result in the post-crisis period while the non-performing loans ratio dropped to the lowest level since it started being assessed in 2014, according to data released by Romania’s National Bank (BNR).

Higher quarterly profits were posted only in the last quarter of 2015 (EUR 498 mln) while the profits reported in the third quarter of 2018 were also outstanding: EUR 461 mln.

The banking system’s assets increased by 6.4% year-on-year at the end of September, to RON 473 billion (EUR 99.5 billion).

The return on assets ratio (ROA) calculated for whole January-September period was 1.45%, compared to 1.76% in the same period last year. The return on equity (ROE) in January-September has also edged down from 16.4% in the first three quarters last year to 13.2% in the same period this year.

The weaker profitability in the year-to-date period is due to the provisions built in the second quarter by two savings-mortgage banks that are required to pay back state grants collected in the past.

Notably for the high profitability achieved by the Romanian banks this year, the revenues to expenses ratio hit 1.93 in January-September, a figure that exceed even those seen in 2008 before the financial meltdown.

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