World crisis brings less profit to banks in Albania

TIRANA, Nov 4 – Though not directly affected by the global financial crisis the Albanian banks are feeling its consequences with less profit in the second quarter this year, according to the central Bank of Albania data published recently.
Return on assets decreased to 1.31 percent, while return on equity fell to 16.62 percent. In third quarter 2007, ROA and ROE were respectively 1.58 percent and 21 percent.
Banks in Albania are facing increasing costs of funds and increasing provisions for doubtful loans.
Earnings before tax for the first half 2008, decreased by 7.14 percent to 5.75 billion leks. Earnings after tax increased slightly by 3.11 percent to 5.05 billion leks due to the income tax decrease.
Albania introduced a flat tax rate of 10 percent effective from 1 January 2008.