Bank profits grow by eight times

TIRANA, September 7 – Albanian banks have increased their profits by 834 per cent this year despite more Albanian companies falling behind on loan repayments, BalkanInsight reported.
The number of companies in arrears rose by 44 per cent in July compared to the same month last year, information released on Monday by the Albanian Banking Association indicated.
But the banks accumulated net profits of 3.7 billion lek (27 million euros) from January to June 2010, despite the cost of bad loans.
The figures indicate private firms in the country are continuing to suffer as Albania experiences its second consecutive year of slow growth due to the aftershocks of the global economic crises.
Albanian banks’ loan portfolios saw sluggish growth over the last three months amid decreased demand from both households and businesses.
Non-performing loans increased to 13 per cent of the total portfolio in July, up from the previous month’s 12.2 per cent.
Deposits showed an increase of 16.6 per cent in 2010, considered a “very strong growth rate”, the association said.