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

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

Montenegrin court seizes passports of opposition leaders accused of coup attempt

Montenegro’s high court has seized the passports of two opposition leaders accused of plotting a coup as a precautionary measure. Andrija Mandic and Milan Knezevic – two of the leaders of the ... more

Russians continue to holiday in Montenegro despite warnings from Russian foreign ministry

The summer tourism season in Montenegro started earlier than expected and indicates that this year the revenue will exceed €1bn – the ... more