The banks’ assets grew to a peak of RON757.3 billion, even though lending growth slowed down on average to some 7.9% year-on-year, preliminary data from Romaina’s central bank show.
This is the highest preliminary nine-month profit for banks ever, after having reached RON7.6 billion in the first nine months of 2022, RON6.4 billion in the corresponding period of 2021 and some RON4.7 billion in the corresponding period of 2020.
Analyzing the trend of the banks’ profits in January-September 2023, the profit in the first quarter stood at RON3.4 billion and doubled to almost RON7 billion by mid year only to go beyond RON10 billion after three quarters. If the growth pace remains unchanged, interests remain high and lending continues, the profit could hit a new record high at the end of 2023, some RON13 billion to RON14 billion.
Return on assets (ROA) and return on equity (ROE) stood at 1.91% and 21.25% in the first nine months of 2023, up from the year-ago period. Judging from the ROA and assets, the banks’ profit reached RON10.8 billion in January-September 2023.
Solvency ratio, one of the most important indicators’ Romania’s central bank monitors, which shows how well capitalized a lender and the entire system are, reached 22.3% in September 2023, up from the end of September 2022, when it stood at 21.5%. It, however, dropped somewhat compared with the end of 2022, when it was 23.4%. Even so, it is still high above the minimum required of 10%.
(English version bu Loredana Fratila-Cristescu)