Patria Bank (BVB: PBK), a Romanian bank focused on supporting local entrepreneurial business and listed on the Regulated Market of the Bucharest Stock Exchange, closed the first quarter of 2025 with a net profit of 10 million lei, up 24% compared to the same period last year. This performance was supported by the consolidation of its commercial activity and operational optimization.
“The results recorded in the first quarter of 2025 confirm the stability of our business model and our ability to adapt to a volatile economic environment. By strengthening our commercial team, diversifying the product portfolio, and improving operational efficiency, we managed to increase profitability while maintaining low risk indicators. We remain committed to supporting the Romanian entrepreneurial environment, with a primary focus on financing micro, small, and medium-sized companies, the agricultural sector, and green energy projects,” stated Valentin Vancea, CEO of Patria Bank.
In Q1 2025, net banking income increased by 13% compared to the first quarter of 2024, reaching 56.8 million lei, while operating expenses increased moderately by only 2%, despite inflationary pressures and the bank’s investments in developing IT systems and cybersecurity infrastructure. The cost-to-income ratio significantly improved from 81% in the first three months of 2024 to 73% in Q1 2025, and excluding the 2% turnover tax, this ratio would have been 71%. Return on equity (RoE) increased to 9.3% from 8.1% in Q1 2024, and return on assets (RoA) improved to 0.9% from 0.8%.
At the asset level, the bank recorded a 4% increase compared to the end of 2024, reaching a total of 4.7 billion lei. The net loan portfolio grew by 7%, up to 2.5 billion lei, driven by higher lending activity in the Micro, SME & Corporate, and Agro segments. New corporate loan sales increased by 56% compared to the same period in 2024, reaching 408 million lei. The SME & Corporate segment posted solid growth, with a 61% increase in new loan sales, while the Micro segment grew by 60%, and the Agro segment by 39%.
In the retail lending segment, Patria Bank continued to actively promote its credit products, recording a 72% increase in sales of unsecured consumer loans, reaching 50.7 million lei. Additionally, secured loan sales increased by 57%, supported by the launch of a new euro-denominated real estate investment loan product offering a fixed interest rate for the first five years.
The bank maintained a prudent risk management policy, with the non-performing exposures (NPE) ratio declining from 5.2% in March 2024 to 3.9% at the end of Q1 2025, while the non-performing loans coverage ratio stood at 57%.
The bank’s balance sheet structure was optimized by reducing reliance on expensive funding sources and shifting towards shorter-term financing options, ensuring a more competitive cost of funds. The loan-to-deposit ratio increased to 72%, from 67% at the end of last year, highlighting a significant expansion in lending activity.
“The financial performance recorded in Q1 2025 confirms the solid direction in which Patria Bank is evolving. Income growth, operational efficiency, and strengthened profitability reflect a sustainable business model, capable of generating value for shareholders while supporting the real economy. The significant reduction in the cost-to-income ratio demonstrates an improved ability to translate income growth into tangible results, with a positive impact on the Bank’s stability and outlook,” stated Georgiana Stanciulescu, CFO of Patria Bank.
In the first three months of the year, Patria Bank continued its innovation and digitalization efforts, launching new products and technologies aimed at enhancing customer experience and operational efficiency. At the same time, the bank actively supported green financing programs and investments in renewable energy projects, strengthening its commitment to supporting entrepreneurial businesses focused on responsible development.
At the end of the first quarter of 2025, the bank’s total capital ratio stood at a solid 20%, above regulatory requirements, confirming a healthy financial position and the capacity to support its long-term growth plans.
Contributor Zuzanna Kurek
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