BRATISLAVA, October 31, (WEBNOVINY) — The banking sector in Slovakia posted a profit of EUR 590.66 million at the end of September. Data disseminated by the National Bank of Slovakia show that banks bolstered their taxed profit 53.9 percent year-on-year. In particular the decline in costs on defaulted loans was behind the improvement, while costs of provisions for retail loans dropped the most. The net volume of provisions and reserves formed decreased by 56.6 percent to EUR 113.44 million. Furthermore, banks reported growth in loans to households and consequent increase in interest income. Net interest income of the banking sector swelled by 8 percent to EUR 1.351 billion. Net income from fees and commissions went up 4.3 percent to EUR 343.42 million.
The largest bank in Slovakia, Slovenska Sporitelna, earned a taxed profit of 146.65 million euros in nine months of this year. This is 47 percent more that at this time last year. „Profit growth resulted in particular from rising volume of trade of clients and our cost discipline,“ said Slovenska Sporitelna CEO Josef Sikela. On rising operating income, general operating expenses decreased. Tatra Banka doubled its nine-month profit from EUR 60.87 million in 2010 to EUR 121.75 million. Behind this result was in particular growth of net interest income, as well as a considerable drop in provisions for bad client loans. The volume of loan portfolio rose 13.2 percent y/y, while defaulted loans declined by three percent, thus contributing to reduction of risk costs. VUB bank’s Q1-Q3 profit rose 38.2 percent to EUR 134.26 million.
Based on the central bank’s data, the banking sector bolstered its profit 101.4 percent y/y to EUR 503.65 million in 2010. Last year was marked by recovery of the financial sector, when profitability and overall financial position improved. Banks’ output grew mainly thanks to the households sector, especially owing to the recovery on the housing loans market. The banking sector, which benefited from low interest rates, now faces the risk of their repeated increase, which poses a credit risk. The segment of corporate lending posted only a minor improvement. Two years ago, banks witnessed a 50.8-percent profit fall to EUR 250.1 million.
SITA
