Montenegro’s bank assets growth slows to 2.9% at end-Jan 2014 on falling lending activity

By bne IntelliNews February 24, 2014

Montenegro’s commercial bank assets grew 2.9% y/y to EUR 2.96bn at end-January 2014, slowing from a 5.4% y/y hike at end-December, due to falling lending activity, data from the central bank (CBCG) showed. The total assets-to-GDP ratio stood at 86.7% at end-January, down from 87.7% a year ago, according to IntelliNews calculations.

Bank loans shrank 2.9% y/y to EUR 2.22bn at end-January, following a 3% y/y rise the month before, dragged down by falling corporate lending and weaker growth of retail loans.

Corporate loans swung to a 6.2% y/y contraction in January from a 1.6% increase at end-December, with credits totalling EUR 1.0bn.

Retail loans went up 2.8% y/y to EUR 881.1mn, easing from a 8.9% y/y growth the month before.

Loans to financial institutions, which accounted for 15% of total loans, continued retreating, shrinking 19.6% y/y to EUR 356mn at end-January, after a 16.8% y/y contraction at end-December.

The average monthly lending growth stood at 5.5% in 2013 reversing a three-year period of decline supported by both the corporate and retail segments.

Related Articles

Montenegro to speed up re-nationalisation of power firm EPCG

Montenegro’s government has decided to speed up the acquisition of Italian A2A's stake in the power firm EPCG, paying €68.9mn for a ... more

EU slams Montenegro’s lack of progress in fight against corruption

The European Commission slammed Montenegro for its lack of progress in fight against organised crime in its progress report released on April 17, and said that the country ... more

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