The aggregate net profit of commercial banks in Kosovo rose 71% y/y to EUR 18.1mn in the first seven months of 2013 on decreasing loan loss provisions, which fell 21% y/y over the period, data published by the central bank showed.
In July 2013 alone, the banking sector earned a net profit of EUR 1.9mn as compared to EUR 0.3mn a year earlier.
However, the sector's profit after taxes for the twelve-month period ending in July shrank 9.6% y/y to EUR 26mn.
Jan-Jul expenditures of Kosovo's commercial banks decreased 4% y/y to EUR 125.2mn. Loan loss provisions declined 21% y/y to EUR 25.2mn, pulling down the banks' non-interest expenditures by 16.7% y/y to EUR 30.5mn. In addition, the general and administrative expenses edged down 1% y/y to EUR 57.5mn. On the other hand, interest costs grew 4.3% y/y to EUR 37.2mn as rates on deposits were 0.23pps y/y higher in July.
Meanwhile, the banking sector's aggregate revenue fell 0.7% to EUR 144.6mn at end-July, declining for a sixth consecutive month. Interest income, the banks' main revenue driver, inched down 1.5% y/y to EUR 116.5mn in Jan-July. Growth of non-interest income, though, quickened to 2.8% y/y in July from 2.2% the previous month (driven by bigger fees and commissions earnings).
The central bank data showed that the assets of Kosovo's commercial banks climbed 5.4% y/y to EUR 2.86bn at end-July. In monthly terms, the assets were up 2.6%.
The ratio of bank assets to the government's 2013 GDP forecast stood at 52.7% in July 2013 versus 53.3% a year earlier.
MPs from Kosovan opposition party Vetevendosje (Self-Determination) released tear gas in the parliament on March 21 with the aim of stopping the vote on the ratification of a crucial border ... more
Serbian President Aleksandar Vucic on March 14 stressed the importance of the US presence in the region, a controversial message given the opposition of many Serbs, especially the pro-Russian ... more
Macedonia was rated only “partly free” in the latest report from international watchdog Freedom House, the same almost all of the six Western Balkan countries, despite efforts by the ... more