SLOVAKIA’s banking sector posted after-tax profits of €590.66 million for the first three quarters of 2011, a jump of 53.9 percent compared to the same period in 2010, the National Bank of Slovakia announced on October 31, as reported by the SITA newswire.
A decline in costs associated with loans in default was particularly behind the improved profitability and set-asides for problematic retail loans dropped the most. The net amount set aside for loan reserves decreased by 56.6 percent to €113.44 million.
In addition the banks reported more loans to households and a consequent increase in interest income. Net interest income went up 8 percent, to €1.351 billion, compared to last year, while net income from fees and commissions increased 4.3 percent to €343.42 million. The largest bank in Slovakia, Slovenská Sporiteľňa, reported an after-tax profit of €146.65 million for the first nine months of the year, 47 percent more than last year. “Profit growth resulted particularly from rising volume of trade by our clients and our cost discipline,“ said Slovenská Sporiteľňa CEO Jozef Síkela.
Tatra Banka doubled its nine-month post-tax profits to €121.75 million due to growth in net interest income and a considerable drop in provisions for bad loans. VÚB Banka’s post-tax profit for the first three quarters rose by 38.2 percent to €134.26 million.
