The aggregated profit of the Romanian banking system decreased by 9.3% y/y to RON 3.35 billion (EUR 657 million, 11.5% down y/y) in Q1, according to data published by the National Bank of Romania (BNR). The aggregated profitability indicators have dropped to the lowest levels in four years, after they remained well above the average compared to other European banking systems.

The decrease was not evenly spread among banks, with the market leader Banca Transilvania (BVB: TLV) still boasting 26% higher y/y profits in Q1. The bank achieved a profit of RON 950.2 million in the quarter.

Since mid-last year, the Romanian banks have been paying an additional bank tax (the so-called turnover tax) of 4% of gross revenues, compared to the previous 2%, which has contributed to the decrease in their profitability.

Thus, the annualised return on assets (ROA) dropped to 1.39% in Q1 from 1.67% in the same quarter of 2025, and the return on equity (ROE) decreased to 14.1% in Q1 from 18.2%. 

Romania’s banking system has boasted rising profits over the past years, nearing EUR 3 billion in 2025, when the profitability ratios were, however, already smaller compared to the previous two years. Thus, the ROE has dropped to 17.6% in 2025, from 18.4% in 2024 and an outstanding 20.1% in 2023. 

The banking system’s average assets increased by 8.9% to RON 964 billion in Q1, with the assets at the end of the quarter reaching RON 970 million (EUR 190 billion). 

The non-performing loans (NPL) ratio remained moderate in Q1, although it increased by 2.8% compared to 2.5% in the same quarter of 2025. 

iulian@romania-insider.com

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