Banks increased their profits by 53% in 2015

Second tier banks in Albania increased their profits by 53% in the first semiannual of this year, according to Bank of Albania statistics published lately. Statistics say banks’ profits reached the amount of ALL 8.3 billion, ALL 2.9 billion more compared to the same period of a year ago.

Net incomes from deposit interests increased by 15% or ALL 3.2 billion more during January-June 2015, compared to the same period of 2014. Experts say banks increased profits due to the reduction of expenses for deposits’ interests by 41% in 2015.

Banks also reduced other expenses but one of the most important moves has been the erase of lost loans from their registers. The level of nonperforming loans decreased by 20% during this year, according to official reports by Bank of Albania. The increase of banks’ profits is seen as a positive development since this gives more financial guarantee for banks to provide more loans to businesses and individuals. Bank of Albania has undertaken several measures in order to increase lending by second tier banks.

News source: ATA
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