Commercial banks in Kosovo ended 2013 with a EUR 26.6mn aggregate net profit, up 44% from the previous year, on the back of bigger non-interest income and smaller loan loss provisions, data from the central bank showed.
In December 2013 alone, the sector posted a combined net profit of EUR 2.9mn, recovering from the EUR 2.2mn loss in the same month of 2012.
The sector's aggregate revenue barely increased in 2013, edging up 0.3% to EUR 247.8mn as a rise in non-interest income was accompanied by a fall in interest income. Banks' interest income shrank 1.1% to EUR 198.2mn, while their non-interest income increased 6.4% to EUR 49.6mn, driven by bigger fees and commissions earnings (up 3.3% y/y to EUR 45.6mn).
Meanwhile, the combined expenditures of Kosovo's banking sector fell 2.4% to EUR 219.2mn. The banks' interest costs climbed 1.1% to EUR 63.8mn. On the other hand, non-interest costs declined 7% to EUR 54.9mn as loan loss provisions dropped by 9.6%, compensating for a 7.7% increase in fees and commissions costs. In addition, general and administrative expenses fell 1.9% to EUR 100.5mn.
The central bank data also showed that the assets of Kosovo's nine commercial banks increased 8.1% to EUR 3bn at end-2013. The ratio of bank assets to the full-year GDP forecast advanced to 56.3% from 55.5% a year earlier.
|Cumulative year-to-date, EUR mn||Jul-13||Aug-13||Sep-13||Oct-13||Nov-13||Dec-13||Change, y/y|
|Fees and commissions||26.0||30.0||33.8||37.8||41.5||45.6||3.3%|
|Fees and commissions||5.3||6.2||6.9||7.7||8.5||9.4||7.7%|
|General and administrative expenses||57.5||65.5||73.7||81.9||90.4||100.5||-1.9%|
|Source: c-bank (BQK)|
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