1. Market Research
  2. > Financial Services
  3. > Banking Market Trends
Romania Banking Report - Q1, 2015

Romania Banking Report - Q1, 2015

  • June 2015
  • 50 pages
  • ID: 3307098
  • Format: PDF
  • By Emerging Markets Direct Media Holdings

Summary

Table of Contents

This report covers the market developments and statistics data released up to June 1.



Romania's banking system reported in Q1 an aggregated net profit of EUR187mn -- the largest quarterly profit in more than six years. But this might be misleading, since the NPL ratio was still 13.85% at the end of March and only one third of the whole bundle of bad loans was removed from banks' balance sheet in the past year. On the upside, the banks took firm steps to clean their balance sheet - strongly encouraged by the central bank. The cost is that the banks incurred losses of more than EUR1bn in 2014 - double the losses in 2013. Losses reported in 2014 measured 1.34% of the banking system's average assets.



Lending has moderately and selectively increased - particularly the local currency mortgage loans. Such new mortgage loans denominated in local currency expanded by 45% y/y in January-April this year. New bank loans issued by Romanian banks to households and non-financial corporations increased by 5.3% y/y to RON15.4bn (EUR3.5bn) in January-April. The volume of new loans denominated in local currency increased by 13% y/y, while new loans denominated in euros contracted by 12% y/y (in euros).



Romania's government endorsed the revised Fiscal Code, which includes significant tax rate cuts, in March. The VAT rate was cut in June to 9% for food and related services. Romania's independent Fiscal Council has endorsed a government bill cutting the VAT rate on food, but warned that the move is risky. The European Commission has on May 13 recommended that Romania take all necessary measures to complete the 2013-2015 BoP programme and implement the comprehensive tax compliance strategy in order to return to the medium term fiscal deficit objective in 2016. The EC's forecast that Romania's headline deficit will deteriorate sharply to 3.5% of GDP in 2016 is based on the assumption that Romania's draft fiscal code, which was adopted by the government in March.



Key points:

oBanking system reports robust EUR187mn profits in Q1, after massive losses in 2014; however, full-year results might remain in the negative area considering the still large volume of NPL

oNew bank loans issued in Romania up 5.7% y/y, to EUR3.45bn in Jan-Apr

oBank loans in Romania 3.8% down y/y at end-April, currency substitution loses ground

oBad loans remain constant in Romania during Q1; The NPL ratio decreased by one third on year, to 13.85% at the end of March from 20.39% one year earlier

oRomania's largest bank BCR reports Q1 profits, NPLs still a problem; the bank plans to sell EUR2bn NPL bundle within weeks - sources

oRomania's government endorses new Fiscal Code, cuts foodstuff VAT rate in June

oEC asks Romania to take measures against expected fiscal slippage

oFiscal Council endorses VAT cut on food, but says is risky

oRomania's government posts 0.7% of GDP surplus in Q1

oRomania's EU funds absorption rate up only 1.1pp up to 54.22% at end-April

oPublic debt up 6.9% y/y at EUR59.75bn, or 39.8% of GDP at end-Feb

oRomania posts EUR406mn, 0.3% of GDP C/A surplus in Q1

Get Industry Insights. Simply.

  • Latest reports & slideshows with insights from top research analysts
  • 150+ Million searchable statistics with tables, figures & datasets
  • More than 25,000 trusted sources
  • Single User License — provides access to the report by one individual.
  • Department License — allows you to share the report with up to 5 users
  • Site License — allows the report to be shared amongst all employees in a defined country
  • Corporate License — allows for complete access, globally.
Ahmad helps you find the right report:
Testimonials

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

We were impressed with the support that ReportLinker’s research specialists’ team provided. The report we purchased was useful and provided exactly what we want.

Category Manager at
Ikea

ReportLinker gave access to reliable and useful data while avoiding dispersing resources and spending too much time on unnecessary research.

Executive Director at
PwC Advisory

The customer service was fast, responsive, and 100% professional in all my dealings (...) If we have more research needs, I'll certainly prioritize working with ReportLinker!

Scott Griffith

Vice President Marketing at
Maurice Sporting Goods

The research specialist provided prompt, helpful instructions for accessing ReportLinker's product. He also followed up to make sure everything went smoothly and to ensure an easy transition to the next stage of my research

Jessica P Huffman

Research Associate at
American Transportation Research Institute

Excellent customer service. Very responsive and fast.

Director, Corporate Strategy at
Ingredion

I reached out to ReportLinker for a detailed market study on the Air Treatment industry. The quality of the report, the research specialist’s willingness to solve my queries exceeded my expectations. I would definitely recommend ReportLinker for in-depth industry information.

Mariana Mendoza

Global Platform Senior Manager at
Whirlpool Corporation

Thanks! I like what you've provided and will certainly come back if I need to do further research works.

Bee Hin Png

CEO at
LDR Pte Ltd

The research specialist advised us on the best content for our needs and provided a great report and follow-up, thanks very much we shall look at ReportLinker in the future.

Kate Merrick

Global Marketing Manager at
Eurotherm by Schneider Electric

FAQ
  • How we can help
    • I am not sure if the report I am interested in will fulfill my needs. Can you help me?
    • Yes, of course. You can call us at +33(0) 4 37 65 17 03 or drop us an email at researchadvisor@reportlinker.com to let us know more about your requirements.
    • We buy reports often - can ReportLinker get me any benefits?
    • Yes. Set up a call with a Senior Research Advisor to learn more - researchadvisor@reportlinker.com or +33(0) 4 37 65 17 03.
    • I have had negative experiences with market research reports before. How can you avoid this from happening again?
    • We advise all clients to read the TOC and Summary and list your questions so that we can get more insight for you before you make any purchase decision. A research advisor will accompany you so that you can compare samples and reports from different sources, and choose the study that is right for you.

  • Report Delivery
    • How and when I will receive my Report?
    • Most reports are delivered right away in a pdf format, while others are accessed via a secure link and access codes. Do note that sometimes reports are sent within a 12 hour period, depending on the time zones. However, you can contact us to escalate this. Should you need a hard copy, you can check if this option is offered for the particular report, and pay the related fees.
  • Payment conditions
    • What payment methods do you accept?
      1. Credit card : VISA, American Express, Mastercard, or
      2. You can download an invoice to pay by wire transfer, check, or via a Purchase Order from your company, or
      3. You can pay via a Check made out in US Dollars, Euros, or British Pounds for the full amount made payable to ReportLinker
    • What are ReportLinker’s Payment Terms?
    • All payments must normally be submitted within 30 days. However, you can let us know if you need extended time.
    • Are Taxes and duties included?
    • All companies based in France must pay a 20% tax per report. The same applies to all individuals based in the EU. All EU companies must supply their VAT number when purchasing to avoid this charge.
    • I’m not satisfied. Can I be refunded?
    • No. Once your order has been processed and the publisher has received a notification to send you the report, we cannot issue any refund or cancel any order. As these are not ‘traditional’ products that can be returned, reports that are dispatched are considered to be ‘consumed’.
  • User license
    • The license that you should acquire depends on the number of persons that need to access the report. This can range from Single User (only one person will have the right to read or access the report), or Department License (up to 5 persons), to Site License (a group of persons based in the same company location), or Corporate License (the entire company personnel based worldwide). However, as publishers have different terms and conditions, we can look into this for you.
Purchase Reports From Reputable Market Research Publishers
IDC's European Consumer Survey, 2019: Expanding and Growing Retail Banking Relationships

IDC's European Consumer Survey, 2019: Expanding and Growing Retail Banking Relationships

  • $ 4500
  • November 2019

This IDC Perspective analyzes the position of European banks in the financial services industry and their relationships with consumers. It leverages data from an IDC consumer survey conducted in 2019 among ...

UK Retail Banking: Opportunities and Risks to 2023

UK Retail Banking: Opportunities and Risks to 2023

  • $ 2000
  • November 2019

UK Retail Banking: Opportunities and Risks to 2023SummaryThe UK’s total loan balances outstanding (including credit card balances, personal loan balances, and residential mortgage balances outstanding) ...

Italy Cards & Payments: Opportunities and Risks to 2023

Italy Cards & Payments: Opportunities and Risks to 2023

  • $ 2750
  • November 2019

Italy Cards & Payments: Opportunities and Risks to 2023Summary’Italy Cards & Payments: Opportunities and Risks to 2023’ report provides detailed analysis of market trends in the Italian cards and payments ...

Consumer Lending in India $ 2100 December 2019


ref:plp2015

Reportlinker.com © Copyright 2020. All rights reserved.

ReportLinker simplifies how Analysts and Decision Makers get industry data for their business.

Make sure you don’t miss any news and follow us on