Aggregate operating profit for the Romanian banking system rose by 31% y/y last year, while the operating revenues increased by 20% and the stock of bank loans advanced by 6.4% y/y at the end of December, according to data provided by the National Bank of Romania (BNR).

The operating margin thus topped 50%, as the operating profit reached RON 18 billion (EUR 3.6 billion), whereas the revenues were RON 34.2 billion.

In this context, Ziarul Financiar wonders how correlated bankers' earnings are with the rise of credit and the economy.

Not only did lending slow down in 2023, but the economy also slowed, recording an increase of only 2% – half of the GDP advance seen in 2022.

In the context of high interest rates, Romanians postponed real estate investment plans, reducing consumption, which had an unfavorable impact on economic growth.

The increase in bank revenues, along with the jump in interest rates, led to a record net profit of RON 13.7 billion (EUR 2.8 billion) for the banking system in 2023.

iulian@romania-insider.com

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