Banks’ profits reach record ALL 20.2 billion, highest ever

The profits of the Albanian banking system touched a new record at the end of November.

According to data from the Albanian Association of Banks, for the 11-month period of 2017 banks earned ALL 20.2 billion, the highest profit ever recorded.

Compared with the same period of the previous year, profit has increased by nearly three times.

The most crucial factor in the high growth of profits is obviously the significant improvement of loan portfolio quality.

At the end of November, non-performing loans declined to 14.3%, the lowest level in the last seven years.

In addition, this improvement has drastically reduced the bank’s provisioning costs, thus helping to significantly increase the financial result.

Increasing profits make the banking system healthier and more optimistic about the future.

This is expected to have a positive effect on the improvement of future lending.

However, it should be noted that high profits remain concentrated in a few large banks, while most banks have profits at normal levels, even modest in some cases.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.