The aggregated net profit of the Romanian banking system contracted by 25% y/y to RON2.74bn (€577mn) in the first half of 2019, 23% lower than in the same period of last year, according to bne IntelliNews calculations based on data released by the central bank. Expressed in euros, the half-year profit narrowed by 25%.
In Q2, the aggregated profit plunged by 48% y/y €202mn. The banks’ profitability deteriorated in the second quarter of the year compared to both last year and the first quarter.
The banking system’s assets at the end of June advanced by 5.6% y/y and hit RON458.8bn, as the stock of loans increased by 7.1% y/y to RON259.6bn.
The annualised return on assets (ROA) and return on capital (ROE) calculated for the January-June period were 1.21% and 11.28%, respectively. The profitability ratios thus decreased from 2018, when they were 1.66% and 15.71% respectively.
Furthermore, the profitability ratios were better in the first quarter of the year at 1.6% and 14.49% respectively.
Assets quality, Risk and Profit for Banking System (eop by default) | |||||||||||||
4Q 08 | 4Q 09 | 4Q 10 | 4Q 11 | 4Q 12 | 4Q 13 | 4Q 14 | 4Q 15 | 4Q 16 | 4Q 17 | 4Q 18 | 1Q 19 | 2Q 19 | |
Assets (RON bn, eop) | 314.4 | 330.2 | 341.9 | 353.9 | 365.6 | 362.3 | 364.1 | 377.2 | 393.6 | 427.8 | 451.2 | 451.9 | 458.8 |
Assets (EUR bn, eop, calculated) | 78.9 | 78.1 | 79.8 | 81.9 | 82.6 | 80.8 | 81.2 | 83.4 | 87.0 | 91.8 | 96.7 | 94.9 | 96.9 |
Assets (RON bn, avg. ytd, estimat.) | 282.7 | 326.5 | 328.1 | 339.9 | 366.8 | 357.2 | 354.9 | 363.6 | 378.5 | 402.4 | 440.4 | 446.5 | 453.4 |
Capital adequacy | 13.8% | 14.7% | 15.0% | 14.9% | 14.9% | 15.5% | 17.6% | 19.2% | 19.7% | 20.0% | 20.7% | 20.0% | 19.6% |
ROA (annualised net profits per ytd avg. assets) | 1.6% | 0.3% | -0.2% | -0.2% | -0.6% | 0.0% | -1.32% | 1.24% | 1.08% | 1.30% | 1.55% | 1.60% | 1.21% |
ROE (annualised net profit per ytd avg. equity) | 17.0% | 2.9% | -1.7% | -2.6% | -5.9% | 0.1% | -12.5% | 11.8% | 10.4% | 12.5% | 14.6% | 14.5% | 11.3% |
Operating incomes/op. expenditures | 1.80 | 1.57 | 1.54 | 1.48 | 1.70 | 1.77 | 1.80 | 1.71 | 1.89 | 1.82 | 1.88 | 1.67 | 1.84 |
Loans (gross) to deposit ratio | n.a. | 113% | 113% | 117% | 117% | 105% | 91% | 85% | 79% | 75% | 74% | 75% | 75% |
Non-performing Loans Ratio (EBA) | n.a. | 20.7% | 13.5% | 9.6% | 6.4% | 5.0% | 4.9% | 4.7% | |||||
Impaired claims / Total loan portfolio | 9.2% | 12.0% | 11.6% | 9.4% | 7.0% | 4.9% | 3.0% | 2.0% | 2.0% | 1.9% | |||
Impaired claims / Total assets | 5.5% | 7.1% | 6.5% | 5.1% | 3.9% | 2.7% | 1.6% | 1.1% | 1.1% | 1.1% | |||
Impaired claims / Total liabilities | 6.2% | 7.9% | 7.3% | 5.7% | 4.3% | 3.0% | 1.8% | 1.2% | 1.3% | 1.2% | |||
Net Profit[1] (ytd, RON mn) | 4,411 | 816 | -519 | -782 | -2,347 | 36 | -4,684 | 4,509 | 4,087 | 5,231 | 6,826 | 1,786 | 2,743 |
Net Profit[2] (quarterly, RON mn) | 760 | 130 | -55 | 2 | -2,238 | -1,437 | -3,092 | 2,255 | 421 | 1,177 | 1,094 | 1,786 | 957 |
Net Profit (annuall, EUR mn) | 1,175 | 194 | -114 | -177 | -530 | 11 | -1,053 | 1,008 | 911 | 1,140 | 1,464 | ||
Net Profit[3] (quarterly, EUR mn) | 191 | 31 | -13 | 0 | -505 | -320 | -690 | 498 | 93 | 253 | 235 | 375 | 202 |
RON to EUR1 [eop] | 3.985 | 4.228 | 4.285 | 4.320 | 4.429 | 4.485 | 4.482 | 4.525 | 4.525 | 4.660 | 4.664 | 4.763 | 4.735 |
Source: BNR, IntelliNews | |||||||||||||
[1] Calculated as [Average Assets]x[annualised ROA, adjusted to reflect ytd period] | |||||||||||||
[2] Calculated as the differential of net profit | |||||||||||||
[3] Converted quarterly at the eop exchange rate | |||||||||||||
Source: BNR, bne Intellinews |