The profit rate of Romanian banks continued to go down in the third quarter of the year, with the return on equity dropping to 10.3%, i.e. two percentage points below the level seen midway through the year. Last spring, the return on equity was at close to 13%, show data from the NBR (National Bank of Romania). Bankers have in fact identified the main factors behind the increased pressure on profits. The lowering of the interest margins, given that most players rely on offering attractive interest rates in order to gain ground, are putting pressure on revenues, while operating costs are rising. Rasvan Radu, executive chairman of UniCredit Tiriac Bank, thinks the human resources issue is becoming a "risk" for the system, as it is increasingly hard to find good professionals, and wages are growing rapidly. On the other hand, rent-related costs and costs related to the acquisition of commercial spaces are also seeing an upward trend, after banks opened more than one thousand branches since the middle of last year alone, exceeding 5,100 branches in the summer. Sergiu Oprescu, chief executive of Alpha Bank, adds that new players keep emerging on the market, whose only option is to come up with highly competitive prices for the products.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
