The Albanian Association of Banks published the quarterly report on banks’ profits in the third quarter of 2014 in Albania. As announced in the report, the total amount of banks activity during this period was 1.272 billion ALL, approximately 3% more than a year ago.
The bank system in Albania is well capitalized, stable and liquid as the total amount of deposits during this period reached 1.050 billion ALL, about 12 billion ALL more than the previous quarter. The deposits of businesses and institutions reduced in September while the deposits of individuals have increased constantly, marking an average increase by 1.8%. The capital sufficiency ratio was 17.6% during September, says the report.
At a time when the interest rates have decreased, individuals tend to deposit their savings to products of deposits with maturity terms of more than 2 years which offer higher profit rates than the traditional deposits. A positive development noticed in the bank system activity is the increase of Albanian currency use in crediting, a tendency that enhances the banking intermediation in Albanian currency.
Another positive signal that comes from the performance of banks, is the increase of businesses demand for loans, being that demand for loans decreased dramatically at its lowest levels in the third quarters of the year. But, despite the attractive offers and loans’ packages for individuals, their demand for loans remains low. Even the norm of nonperforming loans has decreased slightly. All these elements have affected, according to AAB, in the increase of banks profits during the third quarter of 2014.
News source: ATA
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