BRATISLAVA, September 30, (WEBNOVINY) — The banking sector in Slovakia posted a profit of EUR 543.05 million at the end of August. Data disclosed by the National Bank of Slovakia show that banks bolstered their taxed profit 63.9 percent year-on-year. In particular the decline in costs of defaulted loans connected with improving macroeconomic environment in Slovakia had a positive influence on the development. Costs of provisions for retail loans dropped the most. Banks further profited from the growth in retail loans and related interest income. According to the central bank, the Slovak banking sector, together with the banking sector in the Czech Republic and Poland is one of the most profitable sectors within the EU.
Net interest income swelled 8.3 percent from a year ago to EUR 1.2 billion. Net income from fees and commissions grew 3.8 percent y/y to EUR 303.6 million. The volume of provisions and reserves formed decreased considerably, namely by 58.2 percent to EUR 101 million. Behind the growth of the bank houses‘ profit was thus a decline in risk costs, growing volume of trades, improved credit portfolio and positive economic situation.
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
