Banking system profits totaled 1.8 billion lei at the end of September, increasing by 32.5% compared to the same period of the previous year. According to the National Bank of Moldova, the increase in profits was largely determined by the increase of non-interest income by 14%, which amounted to 265.9 million lei.
Total revenues amounted to 5.5 billion lei, of which interest income represented 60.6% or 3.3 billion lei and non-interest income had a share of 39.4%, which represented 2.2 billion lei. At the same time, total expenses amounted to 3.7 billion lei, including interest expenses - 27.8% of total expenses (1 billion lei), and non-interest expenses - 72.2% (2.7 billion lei).
The increase of the profits was determined, in large part, by the increase of the non-interest income. Additionally, interest income also increased by 3.1% or 99.4 million lei as a result of the increase of the loan portfolio.
According to the BNM, on September 30, 11 licensed banks were operating in the Republic of Moldova. CB „Moldindconbank” JSC and CB “Energbank” JSC are supervised under the early intervention regime applied on October 20, 2016, and January 11, 2019, which was applied as a result of the activity of groups of persons who acted in concert and acquired and held 63.89% of Moldindconbank share capital and 52.55% of Energbank, without the prior written approval of the BNM.
During the first nine months of 2019, the trend of consolidation of own funds and increase of assets and loan portfolio continued in the banking sector. It is worth mentioning that, during the reference period, the share of non-performing loans in the loan portfolios was reduced. The banking sector has a high level of liquidity.
