Banks' ranking in 2010
Last year the overall assets in the Romanian banking system rose
by just 3.5% - the lowest increase in the last decade. The economic
crisis also took its toll on the balance sheets of banks, which had
to boost provisions and even remove loans from their balance sheets
because they knew they would never recoup them.
As of December 31st 2010 banks' assets amounted to 342 billion lei
(80 billion euros), with BCR and BRD vying for the top position,
just as 10 years ago, and being followed by a whole range of banks
whose assets were cut in half.
Last year, BCR managed to gain market share, after four years of
decline, while BRD lost ground because it adopted an extremely
cautious policy, no longer willing to take risks in an economy
affected by recession. This policy imposed by the risk-averse new
management, has borne fruit as far as non-performing loans are
concerned, but has also entailed losing clients with big
businesses.
BCR, on the other hand, has been very aggressive on the corporate
segment in over the last year, taking customers from other banks by
being more risk-friendly.
In terms of profit, however, BRD fares significantly better than
BCR, reporting 501 million lei in income, which means its assets
fetch more profit despite being smaller.
Raiffeisen climbed to the third position, replacing Volksbank,
which lost significant ground, falling to the eighth position.
Breathing down Raiffeisen's neck is CEC, the state-held bank that
has been steadily gaining market share over the course of last
year.
Next in the top ten ranking are Banca Transilvania, Alpha Bank and
UniCredit, with Bancpost and ING on the bottom two positions.
The top-ten banks in the system account for 78% of its assets,
proving how concentrated the Romanian market is.
The entire banking system posted a 304 million-lei loss last year,
compared with a record-high profit of 4.4 billion lei in the 2008
peak year.