Profit of banks – ALL 12.6 billion for seven month period

The banking system increased its profits in July.

According to the Bank of Albania data, the progressive earnings of the seven-month period amounted to ALL 12.6 billion, further increasing by ALL 11 billion in the six-month period. While in the same period last year, profit has decreased by 10%.

Return equity of the banking system was 14.6%, a satisfactory figure considering the problems related to the still high level of non-performing loans and the sluggish lending performance. Regarding the profit sharing within the system, they remain largely concentrated on the two largest banks.

However, the most decisive factor in maintaining high returns this year is the improvement of banks’ asset quality. According to the Bank of Albania, at the end of July, the ratio of non-performing loans was 13.4%, to almost the same level as June. Compared to the previous year, the ratio of non-performing loans decreased by over two percentage points.

SCAN

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