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Banks’ profit decreased in first quarter of this year

The financial situation of the banking sector in the first quarter of the year, according to the data presented by banks, is characterized by an increase in assets, loans, deposits of individuals, deposits of legal entities. The profit decreased compared to the same period of the previous year, mainly as a result of the decrease in interest income, concomitantly with the increase in non-interest income, IPN reports.

The National Bank of Moldova said that on March 31, the profit in the banking sector amounted to 814.2 million lei, down 524.1 million lei (39.2%) compared to the same period of the previous year.

The decrease in profit was determined by the decrease in interest income by 1.167,8 million lei (33.9%). At the same time, revenues from exchange rate differences increased by 123.5 million lei (34.7%), while revenues from fees and commissions by 37.4 million lei (4.9%).

At the same time, interest expenses decreased by 502.0 million lei (40.8%), while non-interest expenses (expenses related to fees and commissions, administrative expenses, impairment of financial and non-financial assets, etc.) increased by 14.8 million lei (0.7%).

According to the NBM, total revenues amounted to 3.603.5 billion lei, a decrease of 1.011,2 million (21.9%) compared to the same period of the previous year, of which interest income accounted for 63.3% (2.280,2 million lei), while non-interest income for 36.7% (1.323,3 million lei).

At the same time, total expenses came to 2.789,2 billion lei, down 487.1 million lei (14.9%), compared to the same period of the previous year, of which interest expenses amounted to 728.7 million lei (26.1% of total expenses), while the non-interest expenses – to 2.060,5 million lei (73.9% of total expenses).

At the end of the first quarter, return on assets was 2.1%, down 0.7 percentage points compared to the end of the previous year, and return on equity was 12.1%, down 4.1 percentage points compared to the end of 2023.

On March 31, 2024, 11 banks licensed by the National Bank of Moldova were operating in the Republic of Moldova.

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