The Albanian Association of Banks has published the latest unaudited financial data of trade banks for the second trimester of 2014, according to which, the Albanian bank system continues to be well capitalized and shows a stable performance.
Capital adequacy ratio reached 17.5% from 16.8% reported in the same period a year ago. In late June, the banking system’s assets totaled 1,253 billion ALL, marking an increase of 4.1% compared with a year ago. According AAB, bank’s deposits grew at low but stable rates over the recent quarters, marking an annual increase of 3.1 percent at the end of June.
The expansion of stock of deposits supported mainly by businesses deposits, which only during the second quarter of 2014 grew by about 5.4%. Unlike previous quarters, the outstanding loan granted by banks to the private sector in the second quarter of 2014 shows increase of 4.5 billion ALL or about 0.8%.
The new disbursed credit during this quarter recorded in total about 61.8 billion ALL and is composed in main part (about 83%) by the credit given to businesses. Loan portfolio growth came entirely from the expansion of credit givenin ALL, the stock of which was about 1.9% higher compared to March 2014.
Also, 45% of the new loan is disbursed in ALL, indicating a shift towards All loans. This performance is supported by a higher demand of businesses which need to be financed in ALL, at a time when interest rates for loans have been declining. Loans to individuals, although marking a growth during this quarter after several quarters of shrinkage, it is presented at moderate levels, by confirming a low demand of individuals for loans, regardless the attractive products introduced by banks. Non-performing loans continue to remain at about 24%, with very small fluctuations along the first mid-year of 2014.
News source: ATA
Photo credits: ATA