A Profitable Half-Year for Slovene Banks, Up 25% After Taxes

By , 29 Aug 2018, 09:09 AM Business
Working at the National Bank in Maribor, 1958 Working at the National Bank in Maribor, 1958 Wikimedia - public domain

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STA, 28 August 2018 - Slovenian banks generated EUR 322.9m in pre-tax profit in the first half of the year, a 26.5% year-on-year increase. Profit after taxes was up 25.3% to EUR 295.7m. The total assets of the banking system rose by more than EUR 0.5bn to EUR 38.5bn, shows Banka Slovenije's report released on Tuesday. 

All banks operated at a profit in the first six months. Both net interest revenue (+2.4% to EUR 327.7m) as net non-interest revenue (+10.6% to EUR 265.5m) were higher at the end of June than last year.

The easing of impairments and provisions was stepped up further, in a total amount of EUR 53m by June. Total assets were up by 3.3% in June compared to last year,

"After a solid June increase of loans to the non-banking sector in the amount of EUR 100m, growth increased to 5.6% year-on-year. Despite a June increase of loans to nonfinancial companies in the amount of EUR 81m, the year-on-year growth remained at a moderate 2.5%," the report says.

The stable growth of loans to households continued, with growth of housing loans stabilising in the second quarter at a year-on-year rate of over 4%. Strong growth, reaching 12% in June, has also been recorded in consumer loans, with the share increasing for fixed interest rate loans.

Consumer loans, whose total volume still lags behind housing loans, represent more than a quarter of all loans to household loans.

Deposits by the non-banking sector are also continuing to grow, but mostly on account of higher deposits by households, which increased by EUR 581m in the first six months to EUR 18.1bn, a 6.4% year-on-year rise. The maturity of financing sources is continuing to get shorter as deposit interest rates are extremely low.

The share of sight deposits increased to 71% of all non-banking sector deposits or 73.2% of all housing deposits in the first half of the year.

Banks' exposure to non-performing assets was down by another 0.3 percentage points to 4.9% in June. The bulk are non-performing loans, which amounted to EUR 1.9bn.

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