Banking sector growing by 7.1%, all banks with positive results

2024-08-05 07:57:00, Ekonomi CNA

Banking sector growing by 7.1%, all banks with positive results

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The sector continued to grow in the second quarter of this year.

According to unaudited data published by the Albanian Association of Banks, the total assets and loan portfolio of the sector expanded further, while all banks closed the first half of this year with a profitable financial result.

Total assets at the end of June reached 2 trillion ALL, increasing by about 33 billion ALL since the beginning of the year. On an annual basis, the increase in the total assets of the sector reached 7.3%, from 6.1% that had been the increase at the end of the first quarter.

The largest bank in terms of asset value continues to be the National Commercial Bank (BKT), with 24.6% of the market, followed by Credins Bank, with 16.2%, Raiffeisen Bank, with 14.8%, Intesa Sanpaolo, with 10.5%, OTP Albania, with 9.1%, Tirana Bank, with 7%, American Investment Bank (ABI Bank), with 6.8%, Union Bank, with 5.1%, First Investment Bank (Fibank), with 2.9%, ProCredit Bank with 2.2 % and the United Bank of Albania (UBA), with 1%.

Banks that have increased their market share compared to a year ago are Tirana Bank, Credins Bank, UBA, Fibank and Union Bank. In the last 12 months, Raiffeisen, BKT, Abi Bank, OTP Albania and Intesa Sanpaolo recorded a decline in market share, while ProCredit Bank maintained the same market share as a year ago.

The loan portfolio at the end of June reached the value of ALL 739 billion, increasing by 7.5% since the beginning of 2024 and increasing by 11.7% compared to the same period a year ago.

The credit market continues to be led by Credins Bank, with 19.1% of the total portfolio of the sector, followed by Raiffeisen Bank, with 15.4%, BKT, with 12.8%, OTP Albania, with 12.6%, Tirana Bank, with 9%, ABI Bank, with 8%, Intesa Sanpaolo, with 7%, Union Bank, with 6.4%, Fibank and ProCredit Bank, with 4% and UBA, with 1.8%.

Compared to a year ago, Tirana Bank, ABI Bank and UBA have achieved a rapid expansion in the credit market, while Union Bank, BKT, Fibank and ProCredit Bank also registered a smaller increase. Meanwhile, Credins, Raiffeisen, OTP and Intesa Sanapaolo have lost ground compared to the previous year.

The figures of the Albanian Association of Banks show that all banks closed the first six months of the year with a profit. In total, the sector reported a net profit of 19.3 billion ALL, an increase of 31% compared to the first half of last year.

In absolute value, BKT reported the highest profit, with over ALL 4.7 billion, followed by Raiffeisen, with approximately ALL 4.4 billion, and OTP Albania, with ALL 2.6 billion.

In terms of return on shareholder capital (averaged on an annual basis), the bank with the highest profitability was Raiffeisen, with 29.47%, followed by ABI Bank, with 27.11%,

Fibank, with 25.05%, OTP Albania, with 23.82%, Union Bank, with 22.87%, Tirana Bank, with 20.87%, BKT, with 19.71%, Intesa Sanpaolo, with 15.42%, Credins Bank, with 10.35%, UBA, with 5.48% and ProCredit Bank, with 4.83%. /Monitor