Banks' profitability in the third quarter of 2024 reached 1.08% of the banking sector's average assets and 18.4% of its Tier 1 capital. Banks' profitability relative to assets rose to 1.08% from 1.05% in the previous quarter. This profitability has averaged 1.07% over the last four quarters, above the 1.06% annual average a year ago. At the same time, profitability relative to assets in the latest quarter is below the 2015-2019 five-year average of 1.16% (the long-term average from 2008-2019 was 1.25%). In the case of banks' profitability relative to Tier 1 capital, it rose to 18.4% from 18.3% in the previous quarter. This profitability has averaged 17.2% over the last four quarters, above the 17% annual average a year ago. Relative to prior trends, profitability relative to Tier 1 capital in the most recent quarter is above the 17.8% five-year average of a year ago (the long-term average from 2008-2019 was 20.5%).
Source of primary data
CNB ARAD
Note
Quarterly values. Profit before tax. Value in % of GDP is expressed relative to seasonally adjusted quarterly GDP.