Net profit of the banking sector of Moldova for 9 months in 2020 amounted to 1 billion 151.3 million lei, having decreased by 35% (-619.7 million lei) compared to the same period in 2019.
The National Bank of Moldova (NBM) announced this while assessing the financial situation in the banking sector in January-September this year. According to the NBM, the decline in profit was largely due to an increase in non-interest expenses by 29.5% (792.1 million lei), mainly due to an increase in losses from the depreciation of financial assets. At the same time, interest expenses decreased by 1.9% (19.8 million lei). At the same time, non-interest income increased by 11.4% (245.7 million lei), while interest income decreased by 2.87% (93.1 million lei) as a result of a decrease in the average interest rate on loans in national currency from 8.07% as of September 30, 2019 to 7.68% as of September 30, 2020, and in foreign currency - from 5.21% to 4.91%. The total income of banks for 9 months in 2020 amounted to 5.6 billion lei, having increased versus the same period last year by 152.6 million lei (+ 2.8%). At the same time, in the structure of income, the share of interest income was 57.3% (3.2 billion lei), and non-interest income - 42.74% (2.4 billion lei). At the same time, banks’ total expenditures amounted to 4.5 billion lei, having increased by 772.3 million lei (+ 20.87%) compared to the same period in 2019. At the same time, interest expenses amounted to 1 billion lei (22.5% of the total), and non-interest expenses - 3.5 billion lei (77.5% of the total). According to the National Bank of Moldova, the return on assets and return on equity as of September 30, 2020 amounted to 1.6% and, accordingly, 9%, having decreased by 1 percentage point and 6.5 percentage points, against the situation at the end of the previous year. // 10.12.2020 - InfoMarket.
