Montenegro’s bank assets rise 7.4% y/y to EUR 3bn at end-August 2013

By bne IntelliNews September 23, 2013

Montenegro’s commercial bank assets increased 7.4% y/y to 3.0bn at end-August, speeding from a 5.4% y/y rise the month before, supported by rising lending and cash and deposits held with the central bank, data from the central bank (CBCG) showed. The total assets-to-GDP ratio stood at 87.3% at end-August.

Loans, which accounted for the bulk of bank assets (83%), went up 5.7% to EUR 2.5bn at end-August after rising 5.5% y/y the month before. Household loans grew 6.8% to EUR 880.6mn, following a 6.6% annual increase in July. On the other hand, corporate lending growth slowed to 0.4% at end-August, from 0.6% the month before as rising loans to foreign and state-owned companies was partly offset by falling loans to private companies.

Bank’s cash and deposits with the central bank, which include banks' reserve requirements, climbed 25.3% y/y to EUR 348mn at end-August, acceleratinfrom a 8.0% annual growth in July, likely reflecting stronger deposit collection.

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.

Related Articles

Montenegrin court sentences opposition leader for protest violence

Montenegro’s court in Podgorica sentenced Milan Knezevic, one of the leaders of pro-Russian opposition Democratic Front, to 7 months in jail on October 18 ... more

Montenegro’s court unfreezes A2A's shares in power monopoly EPCG, paving way for sale of stake

The high court of Podgorica said it has decided to unfreeze the shares of Italy’s A2A in Montenegro’s power firm EPCG after ... more

US diplomats fail to persuade Montenegro’s opposition to return to parliament

Opposition parties in Montenegro have said they are willing to resume dialogue with the ruling party, but a series of meetings with the US State ... more

Dismiss