Banks profits fivefolded in the first five months of 2014

Banks profits fivefolded in the first five months of 2014

 

According to the Albanian Association of Banks, banks profits have risen fivefold in the past 5 months, compared to the same period of the last year, which estimate the overall gains of banks to be 4.9 billions ALL.

Experts of this institution say that these results show that banking system is secure and healthy, despite of the difficulties that come from the weakness of real economy,

Albanian Association of Banks says the determinant element in the increase of banks  profits is the stabilization of non-performing loans.

The stationing of non-performing loans at 24% level for several months, has reduced their burden on banks, due to the creation of less reserve funds to cover possible losses.

Bank of Albania emphasized that the banking’s system capital adequacy is 17.9%. This shows that the system possesses enough capital to expand the creditor activity and to undertake new financing.


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