At the end of the first quarter of 2017, the Romanian banking system reported a lower profit, of nearly RON1.24 billion.
The return on assets (ROA) and the return on equity (ROE) stood at 1.65% and at 15.45%, respectively, at the end of first quarter of 2018, higher than in 2017 and close to the level reported in 2008, the year of economic boom and lending outburst. Considering the level of ROA and of assets, the banking system registered a profit of nearly RON1.77 billion in January-March 2018.
The combined profits of Romania’s three largest banks – BCR, Banca Transilvania and BRD – exceeded RON1 billion in the first quarter of 2018, accounting for over a half of the overall earnings posted by the whole banking system.
The solvency rate – one of the main indices monitored by the central bank, which shows the capitalization level of a credit institution – reached 19.84% in March 2018. The level remaines much higher than the required 10%, which shows banks still have enough room to continue funding the economy..
The non-performing loan (NPL) ratio fell to 6.16% at the end of the first quarter of 2018.