Annual profits

Romanian banks already post record annual profits after 11 months

The net profit of the Romanian banking system reached 7.56 billion RON (1.53 billion EUR) in the first eleven months of 2021, enough to set a new annual record for the full year – unless unexpected losses are recorded in December.

The encouraging data was released by the Governor of the National Bank of Romania, Mugur Isărescu, during a meeting with the French Ambassador in Bucharest and representatives of the Mouvement des Entreprises de France International.

This came as no surprise, however, as bank profits after the first three quarters of last year reached RON 6.40 billion.

However, annualized returns on equity (ROE) and assets (ROA) in January-November were slightly higher in 2018 – as the larger profits made last year were partly due to the larger size of the banking system. (by all measures: stock of assets and loans, new loans granted).

The non-performing loan (NPL) ratio also improved at the end of November, to 3.5% – from 3.6% at the end of September (official data) – marking the best performance since the 2008-2009 credit crisis hit. deteriorated the quality of banks’ credit portfolios.

(Photo: Octav Ganea/ Inquam Photos)

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