The Romanian banking system posted aggregated net profits worth nearly RON 4.5 billion (EUR 925 mln) in the first eight months of this year, Ziarul Financiar daily announced quoting data from Romania's National Bank (BNR).

BNR publishes aggregate indicators for credit institutions every quarter.

The latest official data, as of the end of June, indicate RON 2.74 bln aggregated net profits, which indicates that the banks must have accumulated over RON 1.7 bln (EUR 350 mln) worth of profits in July-August. For comparison, the banking system's aggregated net profit in January-September last year was nearly RON 5 bln (EUR 1.05 bln).

The banks' robust gains come against the background of a moderate increase in lending and an economic downturn due to the blockage caused by the COVID-19 pandemic.

Nonetheless, very few Romanian banks set aside provisions for the loan losses likely to surface next year or when the loan repayment moratorium expires. 

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)