Albanian banking system profits ALL 11 million for the first 6 months of 2018.

The banking system recorded an increasing financial result during the second quarter of the year with progressive profit of the banking system amounted to ALL 11 billion.

Bank earnings increased by 2.3 times compared to the first quarter. While for the first half of last year, profit has decreased slightly by 4%.

However, given that 2017 was a record year in terms of profits, it seems that the financial performance of the banking system is still high this year.

We must say that profits remain very concentrated only in a few large banks, while for the rest of the commercial banks, the profits are in normal value and some of them are in loss.

This year it looks like the most decisive factor in maintaining high profits, is to improve the quality of bank assets.

The banking system has recovered nearly ALL 7 billion previously calculated provisions, for possible losses from loans or other financial instruments.

This implies a lower risk rating for the assets. Also, banking system has managed to steadily reduce the ratio of non-performing loans to the level of 13%.

According to the Bank of Albania, at the end of June, the ratio of non-performing loans was 13.27%, from 15.58% a year earlier.

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