Bosnia’s bank assets growth quickens to 3.7% y/y at end-Sept 2013

By bne IntelliNews November 5, 2013

Bosnia’s commercial banks assets rose 3.7% y/y to BAM 22.9bn (EUR 11.7bn) at end-September 2013, following a 3.3% y/y growth a month earlier, central bank (CBBH) data showed. The growth was supported by a mild increase of lending activity and higher bank reserves. The assets accounted for 82.6% of the full-year GDP forecast, down from 83.8% a year earlier, according to IntelliNews calculations.

Bank loans went up 1.9% y/y to BAM 16.2bn as of end-September, quickening from a 1.8% y/y rise the month before mainly due to higher retail lending. Loan growth remained below the 2012 average of 4.9%. Credits to companies increased 1.0% y/y to BAM 8.3bn at end-September, easing from a 1.1% y/y hike in August. Retail loans growth, on the other hand, strengthened to 2.6% from 2.1% at end-August with the value of these credits amounting to BAM 7.0bn.

Bosnia’s commercial banks' reserves, which include cash in banks’ vaults and bank deposits with the central bank, climbed 18.3% y/y to BAM 3.8bn at end-September after rising 16.7% the month before. They accounted for 16.4% in total banks’ assets, up from 14.4% the year before.

Lending activity is projected to grow 4.0% in 2013, the same as the year before, according to the latest forecast of the government's Directorate for Economic Planning (DEP).

Related Articles

Bulgaria’s Borissov appeals to Western Balkan leaders to preserve peace

Boyko Borissov, prime minister of the current EU Council chair Bulgaria, called on April 10 on the leaders of the Western Balkan countries to preserve peace and ... more

Russian Night Wolves defy ban to enter Bosnia

Members of Russia’s nationalistic motorcycle club the Night Wolves entered Bosnia & Herzegovina late on March 20 despite a ban ... more

Pre-election tensions in Bosnia could derail international aid, S&P warns

Increasing political maneuvering ahead of the October 2018 general election in Bosnia & Herzegovina could again derail external financing flows and the country’s solid economic growth, ... more