Earnings therefore, went down by €38.4 million compared with the figure recorded for the end of May 2015, NBS reported on July 6.
The sector’s earnings were negatively influenced by net interest yields. According to NBS’ profit and loss statement, these yields which are the main source of income for financial houses amounted to €741.3 million up to the end of May, which was a drop of 4.2 percent year-on-year.
Net income from fees and commissions reported a fall as well - from €218.6 million up to the end of May 2015 to €215.4 million to the same month of this year. Net earnings of the banking sector for the whole of last year reached €626 million, up 11.7 percent y-o-y.
The central bank pointed to a deterioration in the profitability of the sector back in April, the reason being lower interest rates. Net interest yields were the main driving force behind the banking sector’s profitability between 2005 and 2014. Their volume constantly increased over that period with the exception of 2012.
7. Jul 2016 at 0:14 | Compiled by Spectator staff