The banks’ profit in the first half is about 23% lower than in the year-ago period, when net profit stood at some RON3.6 billion. The banking system’s profit reached a record high in the entire 2018, almost RON7 billion, according to the latest central bank data.
Lending picked up the pace this year. Total private lending started 2019 with growth of 8.4%; the increase in March stood at 7.7% compared with the year-ago month. Total private lending saw 7.1% growth to RON259.6 billion at the end of the first half, while Romania’s economy posted 4.7% growth, after having increased by more than 5% in the first quarter.
Return on assets (ROA) and return on equity (ROE) stood at 1.21% and 11.28% at the end of the first half; lower than in 2018, when they almost matched the 2007-2008 levels. Considering the ROA and ROE, the profit of the banking system reached about RON2.77 billion in the first half.
Banca Transilvania, the largest lender in Romania by assets, posted RON848 million net profit in the first half, an increase of 28% on the year-ago period.
As the lending rose, so did assets, which hit a record high of RON458.8 billion, RON24.2 billion higher than at the end of the first half of 2018.(EUR1=RON4.7305)
(English version by Loredana Fratila-Cristescu)