These findings are contained in a study CEE Banks Sector Review 2025 from the consulting company Dr. Strauss&Partners. The analysts analyzed key financial indicators of the banking sector in 13 developing countries of Central, Eastern and Southeastern Europe for 2024 and made a number of interesting comparisons.
The average return on equity (ROE) for all banks in the region is estimated at 15.9%, but Kosovo, Montenegro and Lithuania have the highest ROE, while Moldova and Romania are among the laggards.
Return on net income: on average around 40% (Bulgaria, Croatia, and North Macedonia outperform; Romania and Lithuania lag behind).
Cost-to-income ratio: 46.3% (Bulgaria, Croatia, Estonia are the most efficient countries; Lithuania, Albania, Moldova, Romania are over 50%).
Last year in Moldova loans grew by 15%, this is one of the best indicators, higher only in Bulgaria – 16%. The average for the 13 states is 11.2%.
However, our average loan rate is too high – 11-12%. And our banks have the highest operating costs – 3.2%. For comparison, in Bulgaria and Croatia – 1.5% each, in Romania – 2.1%. The regional average is 2.02%.
In Moldova, 65% of all bank expenditures are spent on staff compensation – this is a record among 13 countries. The average is 44%.
Overall, the banking sector in Central, Eastern and South-Eastern Europe represents assets of 605 billion euros, covering about 180 banks in 13 countries, providing a net profit of about 10.5 billion euros (2024).
The sector is approaching a plateau in performance after years of exceptional growth driven by a favorable interest rate environment and historically low loan losses. There is a high probability of (re-)entering a period of stagnation or declining profits, which requires immediate strategic preparation and operational optimization, the consulting agency analysts conclude.
