Expert-Grup analytical centre says results reported by banks in April 2019 shows stable situation in Moldova's banking sector

Chisinau, 23 May /MOLDPRES/ - The principal financial and prudential indexes of the banks register values within the limits or even above the limits allowed by the central bank, which determines a comfortable situation for the moment. The indexes of the banking activity in late last April show a stable situation in the sector, the Expert-Grup Independent Analytical Centre has said in an analysis on the bank performance ranking, made public today.  

Experts also said that the banking sector was profitable in continuation, sufficiently capitalized and with a high degree of liquidity for short term. Also, the bank crediting continues its tendency of growth, while the bad credits are decreasing in a moderate pace. The level of equity registers adequate values, which maintains the level of solvency at a high level, with oscillations from one bank to another in the interval 18-71 per cent.

Nevertheless, the basic component of the equity is “represented by the reserves accumulated and the profit reported from the previous periods, the volume of which can change, if dividends are provided to shareholders. The liquidity indicators present a short-term comfortable position and a less comfortable long-term one,” Expert-Grup stressed.   

According to experts, the quality of assets continues to improve amid the decrease in the volume of bad credits and increase in the volume of new credits provided. The rate of bad credits records a level of about 10.9 per cent, with oscillations between 5 and 25 per cent, depending on the bank. At the same time, the volume of the equity remains sufficiently large to cover eventual unforeseen shocks. Nevertheless, “the providing of dividends to shareholders might change the concerned situation.”  

The banking sector continues to accumulate profit. Thus, in the first four months of 2019, the banks gained profit amounting to 746 million lei, up by about 191 million lei against the same period of the year before. In last April, the bank crediting witnessed one of the biggest increases in the last three years. In late April 2019, the overall credit balance recorded approximately 37.5 billion lei, increasing by about 15 per cent against the same period of the last year. The share of credits in Moldovan lei amounted to 63.7 per cent of all credits.    

As for sectors, the credits provided for the construction/purchasing of real estate registers the biggest increase, plus 64 per cent, which determines a growth also for the credits provided in the constructions field, respectively 30 per cent. Also, consumption loans register an increase rate of about 30 per cent – a more and more attractive category for banks.  

Expert-Grup also informed that, in late April 2019, the bank performance ranking was led by the banks of systemic importance for the national banking and financial system: Moldova-Agroindbank, followed by Moldindconbank, MobiasBanca and Victoriabank. These banks have 89 per cent of the profit gained in the sector and 80 per cent of all bank assets.