2013 was the most difficult year for the Albanian business and economy
for the past two decades, but it wasn’t such for the banking system.
Recent data from Bank of Albania show that profits almost doubled in 2013, compared to 2012, reaching to 65 million USD. This is the highest level since 2010, when the total profit of the banking system was 67 million USD.
The data shows that the profit increased mostly due to the improvement of incomes from other activities, which reached more than 54 million USD. Another reason in parallel with this is the stabilization of expenses that banks make for the guarantee funds through which they cover bad loans.
Problematic loans marked the lowest increase since the beginning of the crisis, making banks to block fewer funds to compensate them. Historic data show that the Albanian banks have preserved positive profits during all years of the crisis.
The most difficult year with their balances was 2011, when total profits of the banking system fell with only 706 million ALL. Their main financial indicators in the years to come have constantly improved, regardless of the deteriorated economic situation in general, and regardless of the shrinking of new loans.
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