BCR and BRD account for 65% of overall banking system's profit

The net profit of the overall banking system amounted to around 265 million euros in the first quarter of the year, as market leaders BCR, and BRD accounted for 65% of this figure, despite the fact that the total number of players reached 42. Overall, the average profit per bank amounted to 580,000 euros. The number of lending institutions continued to increase last year, and newcomers were granted significant budgets to spend on the market. Although lending conditions have become tougher, most banks continued to invest in expansion, with 225 new units and almost 1,600 new employees fuelling cost increases. The overall banking network numbered 5,706 units at the end of March, whist the number of employees climbed to 67,250. In fact, the increase in the overall net profit slowed down in March, from a 58% profit increase in RON in the first two months of the year against 2007, to a three-month rise of 48.5%. Large banks saw a significant increase in interest rate margins, as they had liquidity reserves and first increased interest rates for loans, and then for deposits. BCR reported spectacular first-quarter profit growth, over 80%, while newcomer Millennium Bank posted losses worth 6m euros. OTP Bank also remained in the red, although it is only the bank’s fourth year on the market.