Banks register higher net profits in the first quarter

TIRANA, May 18 – Commercial banks operating in Albania registered profits in the first quarter 2010, according to the data published by the Albanian Association of Banks. The profit comes from banks’ assets and high interest rates applied in crediting process.
Data published by the Association of Banks show 10 of the 14 second-tier banks operating in Albania reported profits during the first quarter of 2010.
Raiffeisen Bank is ranked first with a 1.5 billion lek (11 million euros, USD13.5 million), followed by Banka Kombetare Tregtare with 627 million lek (4.6 million euros, USD5.6 million).
Emporiki Bank and Banka Popullore have gone through difficulties and experienced losses.
Tirana Bank earned 30 million lek (2.4 million euros, USD2.9 million) in the first quarter of the year, while Credins Bank 213 million lek (1.5 million euros, USD1.9 million), and Alpha Bank 165 million lek (1.2 million euros, USD1.4 million).
Meanwhile, Emporiki Bank lost 144 million lek (1 million euros, USD1.3 million) in three months while Bank Popullore lost 120 million lek (0.8 million euros, USD1 million).
The net profit of Albanian banking system increased 4.7 times compared to the previous year reaching 1.6 billion lek (11.5 million euros) during the January-March period, according to the central bank data.
Bank of Albania data show banks had registered only 275 million lek of net profits in the first quarter of 2009, suffering the consequences of the financial crisis.
However, the banks’ profits are lower than the same period in 2008, before the start of the financial crisis.