“Well begun is half done”: Banking sector starts 2017 on the rise

The banking system has started 2017 with positive indicators.

According to data from the Bank of Albania for January, the system achieved a profit at the value of 1.7 billion ALL. This result is two times higher compared with the same period a year ago.

The financial results of banks seem to have taken advantage from the stabilization of interest rates, but even indicators of problem loans are thought to have had their impact.

After the drop reported in 2016, this indicator, due to cleaning non-performing loans, has resulted stable for January.

According to the Bank of Albania, the ratio of non-performing loans at the beginning of this year was 18.2%, from 18.3% it was in December.

Stabilization and reduction of non-performing loans remains a key element in reducing the level of problem loans, since they enable keeping expenses in control for provisions.

But, meanwhile, the most determinant factor for the future is expected to be the renewal of lending.

Accelerating credit is the main source of income base of the banking system.

2016 marked positive developments, particularly in lending to households, but the increase was however dim.

For this year, expectations are more optimistic, especially due to further improvements in the economy, which for 2017 is expected to increase to the margins of 4%.

SCAN

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