Banking Market in Romania, 2017

Banking Market in Romania, 2017

Romanian economy has accelerated in 2016 with Gross Domestic Product (GDP) advancing at 4.8 % annual rate. The key driver of the growth was private consumption fueled by lower taxes, surging wages and falling unemployment. Labour market improved further with unemployment rate decreasing to 5.3% in Q2 2017 as opposed to 6.0% a year earlier. The consumer price index (CPI) rebounded from a negative territory in 2016 to +0.7% YoY in June 2017 and it remains on an ascending path.

Romania has the 4th largest banking sector in the CEE with nearly € 87 billion in total assets and a 7.5% regional share. Total banking assets in Romania increased by 4.4% YoY to a record of RON 394 billion as of December 2016. Client deposits at banks recorded strong 12% YoY growth to nearly RON 333 billion with government and household deposits increasing most quickly. By contrast, the outstanding client loans increased only by a fraction in 2016 and reached RON 231 billion. This was a consequence of a continued contraction in corporate lending and a still slow growth in retail loans. One of most encouraging trends recently has been the falling ratio of non-performing loans which has halved since 2014. Banking sector has also made a significant progress in reducing currency risk as the share of outstanding loans denominated in foreign currency has fallen substantially, in particular in case of corporate and mortgage loans. "


Executive Summary
1. Macroeconomic overview
Slide 1: Background: country map, demographic & social statistics, 2016
Slide 2: Consumer markets in Europe and Romania, 2015/2016
Slide 3: GDP, CPI, Exchange rate, 2010-2016
Slide 4: Consumption expenditure of households, 2010-2016
Slide 5: Wages and unemployment, 2010-2016
Slide 6: Government budget and taxation, 2010-2017F
Slide 7: Foreign trade, current account and FDI, 2010-2016
Slide 8: Stock market performance and capitalization, 2010-2016
Slide 9: Market interest rates, 2012-1H2017
Slide 10: Interest rates at banks and NPLs, 2012-1H2017
2. Banking market
Slide 11: CEE banking markets: growth vs. assets per capita, 2014-2016
Slide 12: CEE benchmarks: Assets/capita, Assets/GDP penetration, 2016
Slide 13: Banking assets evolution, in RON and EUR
Slide 14: Market concentration, share of top banks, HHI index, 2014-2016
Slide 15: TOP 12 banks in Romania by assets, market share, 2016
3. Market segments
Slide 16: Total client deposits, evolution by segment, 2012-2016
Slide 17: Household deposits, by currency and by maturity, 2012-2016
Slide 18: Personal Financial Assets by type , 2014-2016
Slide 19: Total client loans, evolution by segment, 2012-2016
Slide 20: Household loans, evolution by currency and by type, 2012-2016
Slide 21: Mortgage loans, evolution by currency, 2012-2016
Slide 22: Corporate loans, evolution by currency and by type, 2012-2016
Slide 23: Top players, retail banking, by deposits and by loans, 2016
Slide 24: Top players, retail banking, by deposits and by loans, 2016
Slide 25: Payments: # cards, ATMs, POS, card payments, 15Q1-17Q1
4. Profitability & top bank profiles
Slide 26: Top 5 banks profitability tree, 2016, percent of average assets, cost income ratio, ROE
Slide 27: Bank profile: Banca Comercială Română
Slide 28: Bank profile: Banca Transilvania
Slide 29: Bank profile: BRD-Groupe Société Générale
5. Mid-term forecasts
Slide 30: Forecast: Retail deposits and retail loans, 2017-2019
Slide 31: Forecast: Corporate deposits and corporate loans, 2017-2019
Slide 32: Forecast: Banking assets, 2017-2019

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