Business News

Banks Generate EUR 85M in Half-Year Profit

Ljubljana, 02 September (STA) - Banks in Slovenia generated a combined after-tax profit of EUR 85m in the first half of the year after recording a net loss of EUR 215.6m in the same period a year ago. Net impairments and provisions were halved to EUR 220.2m, a report from the central bank shows.

Banks' total assets kept contracting, shrinking by 1.5% in June compared to May and by 2.5% from the end of last year to EUR 39.32bn at the end of June, 12.5% below the figure at the end of June 2013, data from Banka Slovenije shows.

The volume of lending to businesses also kept falling with the volume of loans to the non-banking sector contracting by EUR 434.2m or 1.8% in June alone in the biggest fall this year. Year-on-year, the figure fell by 21.3% to EUR 23.34bn; loans to businesses were down 31% and loans to households down 3.6%.

Deposits with banks were slightly up from May but fell 11.4% year-on-year to EUR 32.91bn at the end of June. Household deposits increased by just over 1% from June last year and were up almost 1% from May 2014.

The proportion of loans falling 90 days or more behind among all claims increased by 0.5 percentage points at the monthly level and rose 1.9 points from the end of December 2013 to 15.3% in June.

Considering corporate claims alone the proportion of bad loans rose 2.9 percentage points in the first half of the year to 23.3%. It was up 0.4% from May.

Meanwhile, banks improved their net interest revenues. These rose by 9.4% year-on-year to EUR 416.2m. Non-interest revenues were up 19.4% to EUR 232.9m. Operating costs fell by 4.4% to EUR 335.7m.

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