Romanian banks posted an aggregated net profit of RON 3.2 bln (EUR 653 mln) in Q1, surging by 65% y/y – eight times faster than the 7.8% y/y rise in the volume of loans extended in the quarter and six times the 10.2% y/y rise in the stock of loans at the end of March.

Both the loan origination in Q1 and the stock of loans at the end of March lagged behind inflation.

The ratio of operating incomes per operating expenditure neared 2 – meaning banks collected in net interest and fees twice as much as their expenditures. The ratio improved from 1.72 in Q1 last year and 1.92 in full 2022.

The return on equity (ROE) reached 21.3% in Q1 this year – the highest value on record, including the peak value reached during the real estate/mortgage bubble in 2008.

The banking system’s assets at the end of the quarter rose by 11% y/y to RON 712 bln (EUR 144 bln).

The return on assets (ROA) reached 1.9%, up from 1.2% in the same period last year and 1.5% in full 2022. This is twice the lowest value reached recently, 0.95% in 2020. 

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)