SOFIA (Bulgaria), July 16 (SeeNews) – The banking sector in Central and Eastern Europe (CEE) is expected to record record-high profitability in 2019, with double-digit return on equity (RoE) expected in Southeastern Europe (SEE), according to a report by Raiffeisen Bank International published on Tuesday.
Kosovo is one of the most profitable markets, while Romania is among the most interesting turn-around markets, the lender said in its CEE Banking Sector Report 2019.
The Central Europe/SEE banking sector profit pool stood at 13-14 billion euro ($14.6-15.8 million), exceeding 30 billion euro in the total CEE region in 2018, the lender added.
Raiffeisen also said its analysts have revised upwards their growth expectations for Romania, while solid growth is expected for Serbia and Croatia. Credit growth in Bulgaria is expected to slow down slightly.
The analysis sees the non-performing loans (NPL) ratio in SEE at 7% this year.
Increasing differentiation in the regional strategies of major cross-border banks are also expected, Raiffeisen said, adding that Romania will be among core markets of major CEE banking groups.
($=0.88749 euro)