Nonperforming loans decreased in October

Tirana, December 15, 2015

Nonperforming loans have decreased slightly during October, according to statistics published lately by the Albanian Association of Banks. Nonperforming loans decreased to 20.4% from 20.6% that were registered on September while in annual terms they have decreased by 15%.

Experts say the decrease of these loans has helped private banks to increase their profits, considering that during the period of January – October 2015 their profit increased by 71% in comparison to the profits recorded at the same period of a year before.

The main elements that have affected in this regard is the erase of nonperforming loans from banks’ balances and partially the repayment of these loans by individuals or businesses. The increase of banks’ profit has come also as a result of the increase of revenues from other sources and activities such as the decrease of the costs of the system.

News source: Scan TV
Photo credits: Flickr