The financial results reported by banks show a stable situation in the sector. The main financial and prudential indicators are within limits or even exceed the limits set by the central bank. Liquidity remains much over the regulated limits and in the medium term reach about 54%, which is over half of the bank assets continue to be represented by low risk liquid asserts (state securities, NBM certificates or mandatory reserves), shows the bank performance rankings for this January compiled by the Independent Think Tank “Expert-Grup”.

According to “Expert Grup”, the quality indicators of assets continue to improve. The nonperforming loans represented about 12.15%, with oscillations on the 4.4-31% segment depending on the bank. At individual level, all the banks reported profit for January. Collectively, the profit came to 215.5 million lei, IPN reports.  

Amid the reduction in interest rates and the rise in the demand for loans from private individuals, bank intermediation sees a positive growth pace fueled mainly by the extension of the monthly volume of new loans provided for buying/building homes or for consumption. Lending to private individuals tends to increase, but not enough for balancing the speed of repaying earlier released loans.

At the end of January 2019, the loans provided by the commercial banks totaled 35.3 billion lei, down 176 million lei on a month before. The loans released in national currency rose to 62%, followed by those in euros with a share of about 26%.

The bank performance rankings for the end of this January are led by the banks of systemic importance BC “Moldova-Agroindbank”, BC “Moldindconbank” and BC “Mobiasbancă”. These excel mainly in terms of profitability and market indicators and account for about 67% of the profit made at sector level and for 62% of the bank assets.

The banks with the most solid capital base in relation to assets are: Eximbank, BCR Chisinau and Energbank. The banks with the largest liquid assets are: Victoriabank; Eximbank and Energbank. The banks with assets of the highest quality are: EuroCreditBank, ProCredit Bank and FinComBank. The banks with the highest return on capital are: Moldindconbank, Moldova-Agroindbank and Victoriabank, while the banks with the largest market share by the loan portfolio are: Moldova-Agroindbank; Moldindconbank and Mobiasbanca.