Romania’s banking system recorded an overall net profit of RON 5.36 billion (EUR 1.17 billion) in 2017, up by 31% compared to the previous year. This was the best nominal result ever for the local banks.

Banks in Romania ended the year with a return on equity (ROE) of 12.68%, up by 1.26 percentage points versus 2016, according to preliminary data released by Romania’s National Bank (BNR). The local banks recorded a better ROE only in 2008, when the indicator reached 17.04%.

The return on assets (ROA) reached 1.32% in at the end of 2017, up from 1.08% at the end of 2016.

The total net assets of local banks went up by 8.6% in 2017, reaching RON 427 billion (EUR 92 billion). The overall non-performing loans ratio of local banks dropped to 6.4% at the end of December 2017, from 9.62% in December 2016. The loans to deposits ratio also went down from 79% in 2016 to 74.7% in 2017, as the deposits increased faster than the loans.

A total of 25 banks operated in Romania at the end of 2017, 7 of which were subsidiaries of foreign groups.

editor@romania-insider.com