The banking system in Romania posted RON1.17 billion profit in the first quarter, and doubled it to RON2.4 billion by mid-year.
Return on assets and return on equity remained in positive territory at the end of the first nine months, 1.3% and 12.32%. Given the ROA and asset levels, a simple calculation shows about RON3.7 billion profit for the banking system in January-September.
The rise in banks’ profits was made possible by the improvement in portfolio quality and the decline in provisions, as well as by the new loan sales. The loan-deposit interest margin and the increase in fee and commission income also helped the banks’ bottom line. A significant contribution came from the sale of the Visa shares in the second quarter, as well.
(English version by Loredana Fratila-Cristescu)