Banks’ profits increase – ALL 13.2 billion for eight months
The gains of banking system in Albania grew again in August. According to data from the Bank of Albania, the eight-month progressive profit was worth ALL 13.2 billion, further increasing from the profit of ALL 12.6 billion in the first seven months.
However, the profitability of the system is a little lower than last year’s record-breaking figures, by about 16% less. Return on equity has already reached more acceptable levels for investors, to 13.4%.Although return on equity is still lower compared to the pre-crisis period, when the 20% limit was exceeded, current levels are satisfactory considering the fact that the domestic demand has not yet fully recovered and the market does not offer enough business potential for banks.
However, the most decisive factor in maintaining high returns this year is the decline in bad loans. According to the Bank of Albania, at the end of August, the ratio of non-performing loans was 12.9%, at the lowest level since 2010.During this year, the main effect of the decline in this indicator is restructurings and credit return, while last year the decline in non-performing loans was the result of the cancellation of lost loans.
SCAN
*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.