The aggregated net profit of the Romanian banking system edged down by a mere 0.7% y/y to RON 3.7 billion (EUR 740 million) in Q1, according to data published by the National Bank of Romania (BNR).
The profitability ratios have slightly deteriorated compared to Q1 2024 but remained only marginally below the average 2024 levels. Thus, the return to assets reached 1.67% (1.83% in Q1 2024), and the return to equity reached 18.2% (19.8% in Q1 2024).
The banking system’s assets increased by 7.7% y/y to RON 887 billion (EUR 178 billion).
The stock of loans advanced faster, by 9.2% y/y to RON 424 billion. The loan-to-deposit ratio reached 68% at the end of March 2025, up from 66% one year earlier. The ratio remains, however, low in absolute terms, having gradually declined from 94% a decade ago.
The non-performing loan ratio remains moderate at 2.5% for the fourth consecutive quarter.
iulian@romania-insider.com
(Photo source: Elizaveta Elesina/Dreamstime.com)
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