Romania - The Banking Sector in Central Europe - Performance Overview
The analysis of the banking sectors in Romania
- Over the last four years, net profit has declined at a massive CAGR of 59%. Net profit was barely existent in 2011, and net income amounted to just EUR 4.5B, far below the peak of EUR 5.1B recorded in 2008.
- The cost of risk in 2011 remained at an eye-watering 3.1%, the highest in the region.
- The Romanian loan to deposit ratio, which in 2011 stood at 125%, is among the highest in the region.
- Romanian market is its very strong reliance on FX lending, which amounts to a high 63.7% of the total loanbook. This dependence is visible in both main customer segments – FX-denominated credit stands respectively at 61% and 66% of corporate and retail lending.