The banks’ profit was slightly lower in 2019 than the record profit of 2018, almost RON7 billion. The gross profit of the banking system stood at some RON7.92 billion in 2019 and the profit tax banks paid stood at RON1.53 billion.
The high profits of banks came as a result of the rise in lending and economic growth. Total lending increased by 7.6% compared with 2018, the highest rise after 2009. Romania’s economy saw 4.1% growth in 2019.
Return on assets (ROA) and return on equity (ROE) reached 1.35% and 12.32% at the end of 2019, lower than in 2019. The solvency ratio, one of the most important indicators Romania’s central bank monitors, which shows how well capitalized banks are, rose to 20% again at the end of 2019. On the other hand, the loan-to-deposit ratio and the NPL ratio dropped in 2019 compared with 2018.
(English version by Loredana Fratila-Cristescu)