After three quarters of 2019, all banks continue to accumulate profit
Automatically translated summary. The full text is available in Romanian.
At the end of September 2019, Moldova's banking system remained profitable across the board, with rising inflation expectations shaping the main trends. Independent Think Tank “Expert-Grup” reviews the sector's results for the first three quarters of 2019, covering capitalisation, liquidity, lending and a ranking of bank performance.
Banks remain well capitalised, with own funds ratios of 19–55%, but high capital does not always mean efficiency: large banks earn a return on capital of 13–23%, small ones only 5–8%. Short-term liquidity is comfortable, with about 50% of assets liquid and loans at 45%. The non-performing loan ratio is about 10.2%, ranging from 5% to 25% by bank.
In the first three quarters of 2019 the sector earned about MDL 1.8 billion, MDL 434 million (32.5%) more than a year earlier. The loan stock reached about MDL 39.6 billion (+14.5% year on year), driven by households (+42%), while lending to businesses slowed to +4.5%. The top performers are Moldova-Agroindbank, Moldindconbank, MobiasBanca and Victoriabank, which account for about 86% of profit and 79% of assets.
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