The Slovak banking sector recorded an almost 50-percent slump in profits in 2009 in the wake of the economic crisis, yet the sector’s development and situation can be called stable, according to a member of the country’s central bank, the NBS, according to the TASR newswire.
Slavomír Šťastný, head of NBS’s department for supervision and regulation of the Slovak financial sector, told a press conference on April 12 that the country’s banking sector and related institutions are expected to easily withstand any foreseen developments as well as a situation deteriorating beyond expectations.
The drop in profits was led by a hike in the banks’ expenses incurred to cover losses from loans, combined with stagnation in incomes from interests and a fall in currency exchange revenues following Slovakia’s accession to the eurozone.
According to Marek Ličák, who is in charge of NBS’s department for risk analysis of financial markets, the first three months of 2010 indicate that the banks’ profits will be higher in 2010 than in 2009. He said profits in February were higher by 15 percent year-on-year.
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.
