Moldovan analytical centre states financial results reported by banks at end of 2018 indicate stable situation in sector

Chisinau, 25 January /MOLDPRES/ – The main financial and prudential indicators of banks record values ​​within the limits, or even above those admitted by the central bank. The reserves accrued in addition to capital maintain the level of solvency at a higher level, with fluctuations from one bank to another in the range of 21 – 62 per cent. The liquidity remains well above the regulated limits in the short term reaching a level of about 55 per cent, according to the Independent Analytical Centre Expert – Grup in the analysis of the ranking of banking performance released today.

The experts also consider the asset quality indicators continue to improve, with non – performing loans standing at around 12.5 per cent, with a swing of 05 – 31 per cent in terms of the bank. Also, the banks continue to generate profits, but their ability to sustain such a long – term pace appears to be limited, as profitability is not necessarily the result of loan expansion, but rather a marginal effect of monetary policy be taken into account in the short term. For 2018 the banking sector reports a net profit of MDL 1.6 billion, about MDL 100 million more than in 2017.

At the end of 2018 the stock of loans granted by commercial banks recorded the value of MDL 35.5 billion, up by 6 per cent or MDL 2 billion versus the end of 2017. According to experts, the loan growth is mainly based on non – productive sectors of economy, such as consumer and real estate loans, which further confirms the reluctance of economic agents to invest and expand their businesses.

According to Expert – Grup's info, the banking performance ranking continues to be led by systemically important banks for the national banking and financial system, namely Moldova – Agroindbank (MAIB), Moldindconbank and Mobiasbanca. Mostly they excel in profitability and market indicators, accounting for about 81 per cent of the profits in the sector and 62 per cent of total bank assets. The banks with the highest return on capital are Moldindconbank, Mobiasbanca and MAIB, and in the top banks with the largest market share of the credit portfolio are: MAIB, Moldindconbank and Mobiasbanca.