Business News

Banks in Slovenia Finish Q1 with Profit of EUR 7.3m

Ljubljana, 15 May (STA) - Banks in Slovenia finished the first fiscal quarter with a pre-tax profit of EUR 7.3m, which is a marked improvement over the EUR 18.6m pre-tax loss made in the same period last year, a central bank report concluded.

The return to profitability in the first quarter was marked by a significant drop in impairments registered by banks in the first quarter: at EUR 104.6m, write-downs fell by 41% over the same period last year.

Although profitability of banks has increased, their revenues continue to slide, shows data from Banka Slovenije, which puts gross revenues for the quarter at EUR 286.8m, down 15.9% over the same period last year.

Net interest revenue stood at EUR 193.7m, which is 21.1% less than in the first quarter of 2012, while non-interest revenues fell by 2.6% to EUR 93.1m.

Meanwhile, banks in Slovenia also reduced operating costs at an annual level, which fell by 4.6% to EUR 174.9m.

Meanwhile, the central bank's report points to continued weakness in crediting, with the value of all loans at the end of the quarter standing at EUR 35.48bn, down 8.3% on the same period last year.

Loans to businesses fell by 11.6%, while loans to households were down 2.8% over the same period last year.

Meanwhile, the total assets of banks in Slovenia grew by 0.1% in March over the month before to stand at EUR 46.11bn. This is 8% less than in March 2012.

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