Romania’s banking system will remain in the profit area this year after its aggregate profit increased to RON 1.6bn at the end of October from RON 1.5bn in Jan-Sep, the head of the central bank's surveillance department, Nicolae Cinteza, told a banking conference as quoted by news agency Mediafax.
Roughly half of the 41 banks will report profits at the end of the year, while the rest of them will remain in the negative area, he added.
Romania’s banking system reported aggregate losses in 2010-2012 and turned into the profit area in 2013 despite the share of bad loans that keeps rising, and the sluggish creation of new loans.
Banks have probably increased their provisions for bad loans rather sharply in November and will continue to do so in December as they are adjusting their provisioning policies to the IFRS, Cinteza commented, implying that the end-year profitability would visibly decrease.
The stock of provisions under the national methodology increased by more than RON 1bn in September to RON 45.9bn [EUR 10.3bn] at the end of the month to account for 22% of the banks’ total exposure [loans plus deposits]. In October, however, the stock of provisions increased much slower, by only RON 318mn.
Romanian natural gas transport company Transgaz will soon open an office in Chisinau to speed up the construction of Ungheni-Chisinau pipeline that will bring Romanian gas to Moldova’s main ... more
Global engine and generators manufacturer Cummins plans to relocate production from the UK to Craiova, in southwest Romania, after Brexit, Craiova mayor ... more
Nato launched a new multinational force in Craiova, southern Romania, on October 9, as part of its Forward presence in the southeastern alliance states. The move is aimed at countering ... more