Business News

Banks Accumulated EUR 41.5M Loss in First Four Months

Ljubljana, 18 June (STA) - Banks in Slovenia accumulated a total pre-tax loss of EUR 41.5m in the first four months of 2013, according to the latest report from the central bank Banka Slovenije. The quality of loan portfolio of banks somewhat deteriorated in April after months of stagnation.

In the January-April period, banks operating on the Slovenian market spent half of their gross revenues for covering the costs of provisions and impairments.

The share of loans due for more than 90 days in total loans was at 15.2% in April, which is 0.6 percentage points more than in March, Banka Slovenije said after the session of its governing board on Tuesday. One of the reasons for the increase is the shrinking total assets of banks.

Following two months of growth, total assets of banks in Slovenia decreased to EUR 450m in April. Year-on-year, total assets shrunk by 8.5%, which is 2.2 percentage points more than at the end of 2012.

Lending activity continued to shrink as well, primarily due to a decrease in the amount of deposits by the non-banking sector, according to the central bank.

Despite a significant decrease in deposits from households, deposits by the entire non-banking sector remained level in April year-on-year.

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