Net profits of Slovak banks down by more than a third

Net profits in the Slovak banking sector reached €274 million in the first half of 2012, a drop of 38 percent year-on-year, according to data released by the National Bank of Slovakia (NBS), the country’s central bank, on Tuesday, July 31.

Net profits in the Slovak banking sector reached €274 million in the first half of 2012, a drop of 38 percent year-on-year, according to data released by the National Bank of Slovakia (NBS), the country’s central bank, on Tuesday, July 31.

"The main reason lies in the drop in net interest income combined with the bank levy," the Slovak Banking Association (SBA) said the same day, as quoted by the TASR newswire. Slovak banks paid €49 million to the state in the first half of 2012 via the bank levy. Banks’ net interest income, which is their main source of profits, went down for the first time since the economic crisis began in 2008, by 1 percent, to reach €882 million in the same period. The interest expenses of banks grew by 14 percent at the same time, reaching €337 million.

"The second most important source of income is the net fee and commission income, which grew slightly, by 2 percent, thanks to the halted growth of costs of operations-related fees," the SBA specified. Banks’ total balance sheets were up by 3 percent, to €57.242 billion. Meanwhile, the amount of loans provided to domestic companies decreased by 2 percent year-on-year. On the liabilities side, the balance sheet grew thanks to retail deposits. The share capital of the banks strengthened by 12 percent during the same period.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

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