TIRANA, July 17
The Albanian banking system closed the first 5 months of 2019, with a total income of Lek 8 billion. According to data from the Bank of Albania, there was an increase of 5% of income, compared to the same period of last year, 2018.
The financial performance of the banking system in recent years appears stable and a determining factor was the decrease of the non-performing loans. At the end of May 2019, this ratio was 11.4%, almost 2% less compared to the same period of last year. The decrease of this indicator has stabilized the expenses for provisioning, with a positive impact on the financial result of the banks.
The results of the first Q1 of 2019, published by the Association of Banks, show that the profits were distributed in the majority of banks. 12 of them closed the first trimester, with profits and only one of them with a negative amount. Also, the capitalization of the baking system remains at high levels. The capital adequacy ratio at the end of the first trimester of 2019 was 18% from 12% that is the minimum required by the Bank of Albania. After several years, the banking system is more solid, and healthier, creating conditions for a bigger offer for the economy.