Banks discover a new segment: individuals, who prove to be the most responsible clients
Automatically translated summary. The full text is available in Romanian.
At the end of the second quarter of 2019, Moldova's banking sector continued to grow, with improving financial and prudential indicators. According to the Independent Think Tank “Expert-Grup” analysis of mid-2019 data, banks are shifting their business model towards individual clients, who prove to be the most responsible when it comes to repayment.
Banks remain profitable and well capitalised. Solvency ratios range from 19% to 65% across banks, and about 52% of assets are liquid. The non-performing loan rate is around 10.6%, ranging from 4.8% to 26%. In the first six months of 2019 banks earned MDL 1.15 billion in profit, roughly MDL 270 million more than a year earlier.
Lending is accelerating across all segments. The total loan stock reached about MDL 38.8 billion, up around 17% year on year. Growth is driven by individuals (over 35%), while businesses remain cautious about investment and bank financing (only 9%). In the performance ranking, Moldova-Agroindbank leads, followed by Moldindconbank, MobiasBanca and ProCredit Bank. The first three account for about 74% of sector profit and 63% of total bank assets.
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