The aggregated net interest income derived by Romanian banks increased by 13.5% in the first half of this year compared to the same period last year, to RON 7.1 billion (EUR 1.49 bln), Ziarul Financiar daily reported.
The improvement was driven mainly by the banks' decision to accelerate the increase of active interest rates (the lending interest rate), while being rather sluggish in rising the passive (deposit) interest rates.
The banks thus received RON 9.2 bln (almost EUR 2 bln) interest from the loans they extended, 18% up year on year. On the other hand, they paid interest of RON 1.77 bln (EUR 0.37 bln) for deposits, indeed 41% more than in the same period last year but still five times less than the interest rate received.
Despite the high and rising net interest revenues, the profits of the banking system deteriorated in the first half of the year. The aggregated net profit of the Romanian banking system reached RON 2.77 bln (EUR 580 mln) in the first half of this year, 23% lower than in the same period last year.
The stock of non-government (private) lending increased by 7.9% year on year to RON 263 billion (EUR 55.6 bln) at the...