However, the Romanian banks reported an aggregate profit of RON1.46 billion in the first nine months of 2013.
Although they switched to International Financial Reporting Standards (IFRS), local banks still compute their loan-loss reserves under the Romanian Accounting Standards (RAS).
Provisions under RAS rose by RON1 billion in September to nearly RON46 billion, but they do not reflect all reclassifications of restructured loans. Also, provisions under IFRS rose to RON34.36 billion in September, from RON33.74 billion at the end of August, way above the monthly average registered lately.
The Romanian banks reported an aggregate net profit of RON1.5 billion in the first eight months of 2013, versus losses a year-earlier, helped by lower risk costs and fewer loan-loss provisions, the Romanian central bank said in its latest Financial Stability report released on October 21.
In January-August 2012, the local lenders posted aggregate losses of RON200 million.
“The profitability indicators, namely the return on assets (ROA) and the return on equity (ROE) ratios, fell back into positive territory after the first eight months of 2013; however, a sustained recovery of the private lending is vital for the financial results to stay positive on the longer run,” the report showed.
Romanian banks reported a combined loss of RON2.3 billion in 2012, hit by rising provisions. (EUR1=RON4.4424)