Montenegro’s commercial bank assets rose 5.4% y/y to EUR 3.0bn at end-July 2013, quickening from a 4.8% increase the month before on the back of stronger retail lending, data from the central bank (CBCG) showed. The total assets to GDP ratio stood at 85% at end-July.
Loans, which accounted for the bulk of bank assets (83%), grew 5.5% to EUR 2.5bn at end-July after rising 4.8% y/y the month before. Household loans grew 6.6% to EUR 882.5mn over the period, inching up from a 5.9% annual increase in June.
Corporate lending growth slowed to 0.6% (with a total of EUR 1bn) at end-July from 2.3% the month before as rising loans to foreign and state-owned companies was partly offset by falling loans to private companies.
Bank lending and assets have been showing signs of recovery since January 2013 after retreating in annual terms since January 2010 (latest available) supported by both the corporate and retail segments. However, corporate lending growth has weakened since the second quarter of the year, possibly reflecting reduced demand and banks’ cautious attitude towards rising NPLs (at close to 20% as of end-May).
Montenegro's bank assets and loans, EUR mn | Dec-09 | Dec-10 | Dec-11 | Dec-12 | May-13 | Jun-13 | Jul-13 |
Total assets | 3,025.2 | 2,943.7 | 2,809.7 | 2,808.3 | 2,888.0 | 2,915.0 | 2,985.2 |
y/y,% | n/d | -2.7 | -4.5 | -0.1 | 4.1 | 4.8 | 5.4 |
m/m,% | -1.7 | -0.8 | -1.7 | -0.5 | 1.2 | 0.9 | 2.4 |
Total loans | 2,644.1 | 2,517.9 | 2,359.2 | 2,342.0 | 2,477.6 | 2,457.5 | 2,505.8 |
y/y,% | n/d | -4.8 | -6.3 | -6.3 | 6.4 | 4.8 | 5.5 |
m/m,% | -4.2 | -1.0 | -1.6 | 0.2 | 0.4 | -0.8 | 2.0 |
Source:CBCG |
The European Investment Fund (EIF), part of the EIB Group, said on April 15 that it has signed guarantee agreements with 11 banks and financial intermediaries in the Western Balkans. These ... more
EIB Global, the financial arm of the European Investment Bank (EIB) for activities beyond the EU, set a new record by investing €1.2bn in the Western Balkans in 2023, the EIB said on February 9. ... ... more
This Southeast Europe Outlook 2024 has been prepared by bne IntelliNews as part of a series of annual reviews providing updates on the geopolitical, macroeconomic and commercial state of ... more