BRATISLAVA, July 31, (WEBNOVINY) — The banking sector in Slovakia reported a taxed profit of 244.5 million euros over first half of 2012. According to data of the central bank, this is 36.4 percent less than at the same time of last year. Net interest income dwindled slightly, by 1.1 percent, to 882 million euros. Banks in Slovakia say that their profitability has dropped this year mainly due to the introduction of a special bank levy that the government approved as part of its budget consolidation package.
When the levy was introduced, banks repeatedly warned that the levy will have a negative impact on their profitability this year. The National Bank of Slovakia said that the profit in the sector might not return to the pre-crisis levels also because the bank levy. The financial sector has been already taxed more than in the past and this is probably not going to change.
Earlier this month the Slovak Parliament approved a bill that is part of consolidation efforts of the government of Robert Fico increasing the special levy for banks. With effectiveness from the last quarter of this year, the basis for calculating the levy will be widened to also include retail deposits, whereby banks will already have to pay the special levy.
Last year’s taxed profit of the banking sector in Slovakia surged according to preliminary results by approximately one-third to almost EUR 672 million. Yet, the Slovak Banking Association said that one-off revenues made up a greater portion of banks‘ profit. After their deduction the sector’s profit oscillated around 2010 levels last year, i.e. around 503 million euros.
SITA
