Banks report a ALL 18.9 bln profit for the 10-month period of 2017: AAB
The banking system is closing 2017 with growing financial results.
According to data from the Albanian Association of Banks, profit for the 10-month period amounts to ALL 18.9 billion or 140 million euros.
This figure represents an increase of 127% compared to the same period of the previous year. Although it is worth recalling that profits remain concentrated in few banks, in gjeneral the balance sheets of the system appear to be improving.
The main factor influencing this result was the reduction in expenses for the non-performing loan reserve.
Provision expenditure for the 9-month period of this year amounted to ALL 1.6 billion, down by nearly 90% compared to the same period of the previous year.
This clearly shows that improved credit quality has had a significant impact on banks’ financial performance.
The banking sector continues to maintain high levels of capitalization.
The capital adequacy indicator is the most important in terms of banks’ financial solidity and measures the ratio of regulatory capital to risk-weighted assets.
At the end of September, this indicator was 16.4%, from 12%, which is the minimum threshold required by the Supervisory Authority.
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