Page 98 - bne IntelliNews Southeastern Europe Outlook 2025

A surge in consumer lending and the refinancing of existing loans boosted banks’ earnings in 2023. The loan stock gained momentum, leading to a slight improvement in the loan-to-deposit ratio, which rose to 67% from 66% in the first two quarters of the year.
The sector’s return on equity (ROE) remained robust at just over 20% for each of the three quarters of 2024, though slightly below levels seen in early 2023, as compliance with equity requirements modestly reduced overall profitability. Similarly, return on assets (ROA) edged down to 1.87% in Q3, compared with around 1.9% in the first half of 2024.
The banking system maintained strong portfolio quality, with the non-performing loans (NPL) ratio steady at approximately 2.5% over the past two quarters. This compares favourably to 2.6% in Q3 2023, despite marginally better performance earlier in 2024.
The record profits underline the resilience of Romania’s banking sector, which continues to benefit from sustained loan demand and prudent risk management.
UniCredit has emerged as Romania’s third-largest bank after completing its takeover of Alpha Bank.
UniCredit announced on 4 November that it has acquired a 90.1% stake in Alpha Bank Romania from Alpha International Holdings SMSA, in a cash and equity transaction.
The deal establishes Romania’s third-largest bank, trailing only Banca Transilvania and BCR, with a 12% market share by assets.
The transaction, approved by relevant authorities, involved a purchase price comprising €255mn in cash and 9.9% of UniCredit Bank Romania’s share capital. Following the acquisition, UniCredit is set to begin the gradual integration of Alpha Bank Romania, with a full merger anticipated by the latter half of 2025 once legal and regulatory stages are finalised.
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