In its 2012 Banking Executive Survey, which polled senior managers of over 100 banks in six central and eastern Europe, the consultancy firm said 73% of the Romanian bankers estimate profitability will grow this year.
“The overall results of the survey show that the Romanian banking sector is quite stable, with relatively good capital adequacy, despite having experienced losses,” KPMG noted.
It said risks to the local banking sector were countered by the efforts of credit institutions, which translated into the consolidation of solvency, provisioning and liquidity levels as well as by measures taken by central bank to address prudential regulation, supervision and adequate management of risks faced by the banking system.
“Romanian banks have made progress in the last few years to restructure key areas such as risk management and clean their portfolio of underperforming assets,” said Serban Toader, Senior Partner, KPMG in Romania.
“I think the situation in Romania and Hungary can only improve,” added Zdenek Tuma,” head of Banking at KPMG in the Czech Republic and former governor of the Czech National Bank.
However, regarding the current situation in the banking sector, 66% of the respondents described 2012 as worse than the previous year and banking executives expect 2013 to be similar, the survey noted.
“Despite overall expectations, positive development is predicted for the sector in Romania, Austria, the Czech Republic and Hungary; in contrast, Slovakia and Poland expect business conditions to worsen in 2013,” KPMG said.