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August 2, 2021

Banks report over EUR 200 M loss in Q3

September came with a 62 pc year on year decline.

The Romanian banking system registered RON 860 M (almost EUR 200 M) loss in Q3, following a H1 after-tax profit of RON 94.5 M, banking sources say, quoted by Mediafax. Romanian banks reported a combined loss of RON 765 M (about EUR 176 M) loss at the end of September, bigger by 62 per cent than the loss of RON 474 M reported after Q3 2010. For the first time since 1999, the banking sector closed 2010 with a net loss of RON 516 M (reviewed numbers) after combined net earnings of RON 815 M reported for 2009, with 20 banks making profit and 22 reporting a loss.

According to the same sources, banks’ provisions continued to rise, exceeding for the first time the threshold of RON 30 bln, in the context of new bad loans piling up. In Q3, lenders registered additional provisions of RON 3 bln. The broken down profit of the banking system in the first six months of the year dropped to RON 94.5 M at the end of June from RON 373 M at the end of March, because of an almost three-fold rise in the combined losses of banks posting negative results. During the mentioned period, 22 lending institutions reported a total profit of RON 1.076 bln, higher by 56 per cent than at the end of Q1 2011. Approximately two thirds of the profit was concentrated with four of the biggest local banks. Meanwhile, 20 banks registered a total loss of RON 982 M, almost three times higher than in Q1.

Mediafax reports that the increasingly poor performance of the banking system has mainly reflected in the territorial network which has lost a total of 100 units since the beginning of the year, decreasing from 6,170 to 6,070 branches and agencies, 40 of which being closed in Q3. The personnel resizing was less abrupt, with only 230 employees leaving the system, and the total decreasing from 66,750 to 66,520 employees.

Nine O’Clock could not verify the information provided via the news agency by the time this issue was closed.

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