The net profit of the Romanian banking system reached RON 7.56 bln (EUR 1.53 bln) in the first eleven months of 2021, enough to establish a new yearly record for the full-year – unless unexpected losses are recorded in December. The encouraging data was released by the governor of the National Bank of Romania, Mugur Isărescu, during a meeting with the French ambassador to Bucharest and representatives of the Mouvement des Entreprises de France International, says Romania-Insider.com.
This didn’t come as a surprise, though, as the banks’ profits after the first three quarters of last year reached RON 6.40 bln.
However, the annualised returns on equity (ROE) and assets (ROA) in Jan-Nov were slightly higher in 2018 – as the larger profits earned last year were partly due to the larger size of the banking system (by all measures: stock of assets and loans, new loans extended).
The non-performing loan (NPL) ratio also improved at the end of November, to 3.5% – down from 3.6% at the end of September (official data) – marking the best performance since the 2008-2009 credit crunch deteriorated the quality of banks’ credit portfolios.
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