Banks across Romania recorded a consolidated net profit of RON 11.6 billion about €2.3 billion in the first nine months of 2025 — almost the same as the same period last year, with a slight dip of 0.6%. The third quarter alone produced RON 6.2 billion (≈ €828 million), down only 0.3% year-on-year.
At the same time, total banking assets rose to RON 907 billion (≈ €179 billion), up roughly 7.9% over the previous year. The loan book expanded too, with outstanding loans reaching RON 444 billion (≈ €87.5 billion), marking a 7.5% increase.
Profitability Ratios Slip But Remain Solid
While profitability remained relatively stable, some key ratios eased compared to last year’s record levels. Return on Equity (ROE) declined from 20.2% in Jan Sept 2024 to 18.4% in 2025. Return on Assets (ROA) also dipped slightly, landing at 1.73%.
Though lower than peaks in 2023–2024, these numbers still reflect a robust banking sector particularly given rising costs and creeping non-performing loans (NPLs).
Non-Performing Loans Creep Up as Economic Pressure Mounts
The NPL ratio, a key indicator of banking health, inched up to 2.9% by end-September 2025, from 2.8% in June, after previously hitting a decade-low of 2.5%.
While still comparatively low, this uptick suggests that some borrowers are beginning to struggle — a warning sign that banks will likely watch closely heading into 2026.
What’s Driving the Growth: Loans, Refinancing and Resilient Deman
Part of the banks’ resilience comes from increased lending: roughly RON 200 billion in new loans were issued over the 12 months to September 2025. However, much of this was refinancing so despite high volume, net loan growth rose by only RON 31 billion.
Particularly strong was growth in retail lending, as households refinanced mortgages and consumer debt, likely benefiting from competitive interest rates earlier in the year. Meanwhile, business and corporate loans remained steady, sustaining banks’ operations.
What This Means for Romania’s Economy and Banking Sector
The fact that banks maintained profits near 2024 levels even as profitability margins shrank and NPLs rose shows a banking sector still largely healthy, but not immune to economic headwinds. Asset growth and increased lending point to continuing credit demand, which could support consumer spending and business expansion.
