Volksbank Romania has highest share of bad loans.

By bne IntelliNews September 9, 2010
Among the ten largest local lenders, Volksbank Romania has the highest share of bad loans, namely 21.6% -- loans under the category of doubtful and loss, according to a survey of Ziarul Financiar daily based on the data reported by banks; the rate was reported at end-Mar, as the bank has not revealed yet its end-Jun financials. Smaller banks face however higher problems, like Carpatica which has a bad loan share of 56%. At end-Jun, the average rate of bad loans for the local banking system was 17.5%, up from 11.3% one year earlier; we expect higher rates through H2 as the fiscal austerity package produces its effects (lower households' incomes, higher consumer prices). Other local banks with high rates of bad loans are BCR (Erste Group, 14.7%), BancPost (EFG group, 12.9%) and UniCredit Tiriac (UniCredit group, 10.9%). Interestingly, the banks with the worst quality of assets are also those where the retail customers are most aggressive in enforcing the new retail lending regulations (ordinance 50/2010). Volksbank and BancPost were also the banks with the highest expansion in terms of assets over the past years before 2008. However, while Volksbank has constantly reported high profit ratios also, BancPost recorded losses in the past years to break even only after the expansion on the credit market ended. The banks with the best quality of assets are Banca Transilvania (6% bad loans), BRD-SocGen (5.9%) and AlphaBank (5.8%).

Related Articles

Romania to spend EUR 37mn in 2013 to close down loss-making coal mines.

Romania's government has earmarked RON 163mn (EUR 37mn) worth of subsidies for 2013 under a programme aimed at closing down the loss-making mines of local company CNH located in the southwestern ... more

Romanias Hidroelectrica sells nearly 0.3TWh of electricity on free market.

Romanian state-controlled hydropower company Hidroelectrica sold on Thursday, March 21, in several separate contracts a total of 0.3TWh of baseload electricity deliverable between April 1 and the ... more

Romania to start privatisation of cargo railway company on April 6-8.

The Romanian government will publish the privatisation call for freight railway company CFR Marfa immediately after the consultants complete their work, probably on April 6-8, Romanian transport ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335