Banks net income shrinks by 92%

Eight months into this year, the net income of the Moldovan banks represented 77.6 million lei, a contraction of 92 percent, or 887.9 million lei on the similar period last year, the National Bank reported.

As of the end of August, banks' obligations stood at 30.734 billion lei, down by 4.2 percent from the start of the year. In particular, personal savings dropped 9.9 percent to 15.406 billion lei, while business deposits by 6.1 percent to 7.17 billion lei. In August, however, the downward trend discontinued and obligations rose slightly, by 0.1 percent. Personal savings rose by 0.8 percent. In January-August, banks' total assets shrunk by 3.8 percent to 37.582 billion lei, revealing a decrement in lending and other banking activities, against the background of a lack in sustainable investment projects and the country's overall economic state.

Loans and financial leasing deals represented the greatest share in banks' assets, 54.1 percent, down by 6.1 percentage points from the beginning of the year.

In the context of risk administration, the biggest share in the total of loans was represented by credits offered to industry and trade (50.3 percent), followed by loans to agriculture and food industry (15.3 percent), loans for homes and constructions (12.5 percent), and consumer credits (10.7 percent).

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