Banking sector profits rose by 5.1 percent, or €14 million, on an annual basis in the first half of 2013, the TASR newswire learnt from the Slovak Banking Association (SBA) on Wednesday, July 31.
The favourable developments were mainly caused by revenues from financial trading. Without such revenues, profits would have shrunk by around 10 percent. Meanwhile, a drop in net interest income from loans represented negative news for banks, as rates have been falling for 13 months in a row.
“They dropped slightly by 0.2 percent in June - from €882 million to €880 million,” said SBA analyst Marcel Laznia. Income from fees, another important source of income for banks, rose by 3.4 percent over the aforementioned period. The net financial trading income exerted a crucial effect on operating profits of the sector, as this income category went up 11 times over the one seen in the same period in 2012.
Banks also did well in providing loans to individuals, but not so much vis-a-vis enterprises, as this indicator has been on the decline since June 2012.
Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.
1. Aug 2013 at 11:00