Tirana Bank Nets 13.4 MN Euros In 2009 Profits Despite Crisis, 27% Higher Than 2008

TIRANA, March 14ؔirana Bank, the local subsidiary of the Greek Piraeus Bank, announced that its 2009 net profit reached 13.4 million euro, 27% higher compared to previous year, despite a 39% increase of provisions for bad loans (5.1mn Euro).
Net Interest income was slightly decreased mainly due to lower business volumes from global crisis and also increased cost of funding not passed completely to borrowers. Operating expenses, despite the additional expenses from new branches and the renovation of branch network, were only 5% more than previous year. Cost to income ratio improved to 42% compared to 45%, one year ago.
Non performing loans are at very low levels 6.6%, while 87% of the total loan portfolio is collateralized with cash or mortgaged properties. Loans to deposit ratio is 106%, almost the same as at the end of 2008.
Total equity amounted to 84.7mn Euro and the total capital adequacy ratio stood at very high levels 15.73%.
The bank believes all the above elements have created a very healthy balance sheet and a very good financial situation to face the challenges in 2010.