BRD-SocGen, Banca Transilvania and BCR remained the three most profitable banks in Romania in the first quarter, followed by Raiffeisen Bank, ING Bank, UniCredit Bank and CEC Bank, according to the financial results announced so far.
The higher profits of banks came as a result of the improvement in portfolio quality and the decline in provisions, as well as of the growth of their business and increase in interest rates, with new loan portfolios on the rise. The large spread between loan and deposit rates and fee incomes, too, were a factor in the high profits lenders posted in the first quarter.
BRD-SocGen, the third largest bank in Romania, was the most profitable in the first quarter. The net profit of the group, which includes BRD and the operations of the insurance, leasing and pension divisions, stood at 414.3 million lei (EUR89 million), an increase of 25.6% compared with the first quarter of 2017.
Banca Transilvania group posted 45.7% rise in net profit to RON388.9 million.
The BCR group, which includes the largest bank in Romania by assets, made RON252.7 million net profit in the first quarter, an increase of 29% on the year-ago period.
Raiffeisen Bank, the fourth leading lender by assets in Romania, ranked fourth by profitability in the first quarter. It ended the first quarter of 2018 with RON212 million net profit, more than double the corresponding period of last year, while loan volume increased by about 12%.
ING Bank Romania posted RON193 million net profit in the first quarter, 86% higher than in the year-ago period. (EUR1=RON4.6303)
(English version by Loredana Fratila-Cristescu)