BRATISLAVA, June 1, (WEBNOVINY) — The banking sector in Slovakia reported a taxed profit of 178.6 million euros at the end of April of this year. According to data of the central bank, this is 30.2 percent less than at the same time of last year. Net interest income increased slightly, by 1.6 percent, to 594.8 million euros, net income from fees and commissions fell by 1.4 percent to 150.7 million euros. Banks in Slovakia have repeatedly warned that the recently introduced bank levy would have a negative impact on their profitability.
When the levy was introduced, banks stated that approval the special levy of 0.4 percent of certain bank liabilities [corporate deposits – SITA note] was bad news for the market. Additionally, a number of regulatory measures is reducing banks‘ rate of return on capital. This may eventually result in some banks considering the efficiency of the banking business in Slovakia and, consequently, open opportunities for acquisitions. Target of acquisitions could especially be some smaller players on the market. The British bank HSBC already announced it was leaving the Slovak market.
Last year’s taxed profit of the banking sector in Slovakia increased, according to preliminary data, about one-third to nearly 672 million euros.
SITA
