FOCUS SHORT

Banks have lower borrowing costs

IN SPITE of the special banking levy introduced this year, most Slovak banks are reporting an increase in profits. Some banks reported profits exceeding €50 million for the first nine months of 2013. Paradoxically, this was helped not only by the growing appetite of households for buying on credit but also by the eurozone crisis, the analyst says.

IN SPITE of the special banking levy introduced this year, most Slovak banks are reporting an increase in profits. Some banks reported profits exceeding €50 million for the first nine months of 2013. Paradoxically, this was helped not only by the growing appetite of households for buying on credit but also by the eurozone crisis, the analyst says.

“One also could say that thanks to the crisis, the interest expenses of banks decreased against last year – to 18 percent,” Maroš Ovčarik, analyst of the Finančná Hitparáda website, told the Hospodárske Noviny daily. Thus, banks were able to obtain financial resources more cheaply than in 2012.

However, these favourable conditions were not enough to help some banks, as was the case with OTP Banka, whose profits slumped. A slight decline in profits was also recorded by Slovenská Sporiteľňa, which blamed legislative changes concerning fees and the bank levy introduced this year. On the other hand, Sberbank Slovensko (formerly Volksbank) managed to move out of the red.

Ovčarik noted that it is interesting that banks’ ability to acquire money more cheaply has not been reflected in all of their credit products. While mortgage interest rates have decreased in recent months, consumer credit rates “went in the opposite direction”, he told Hospodárske Noviny in early November. “However, the volume of consumer credits is markedly less than mortgages for banks.”

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Theme: Finances and Advisory


Top stories

Deputy parliamentary speaker sent selfies to Alena Zs.

Yet another influential Smer politician, Martin Glváč, faces accusations of talking to Kočner's collaborator.

Igor Matovič of OĽaNO holds a picture of Martin Glváč (Smer).

Coalition demands the right of reply for politicians

Politicians ponder new provisions for the Press Code, Speaker of Parliament Danko wants to defend himself against op-eds too.

The ruling coalition (L-R: SNS-Andrej Danko, Smer-Robert Fico. Most-Híd-Béla Bugár).

Slovakia’s Pohoda wins two prestigious European festival awards

The festival organiser praised the awards and says they want to continue and improve the quality of the summer festival.

"They united us." - tribute to Ján Kuciak and Martina Kušnírová at Pohoda 2018.

Maya expert: The world we live in is not the only one possible

Leading Slovak expert contributes to rewriting Maya history.

Milan Kováč