Banks have about 37.2 billion non-performing loans/ The ratio of bad loans decreased to 4.58% in September, with a decrease for the third month in a row
The data of the "Bank of Albania" on financial health indicators for the month of September of the current year show that the banking sector has registered fewer new loans with problems. Specifically, the indicator of problem loans in the ninth month of the year reached 4.58%, a significant decrease from the 4.61% that had been in the same period of the previous year.
So, of the 813 billion ALL loans granted to the economy in September 2024, 4.58% or 37.23 billion ALL are classified as non-performing loans. With the term non-performing loans, we mean loans or borrowings that are not repaid according to the conditions set out in the initial loan contract.
If we extend the analysis from the beginning of this year, we notice that the ratio of problem loans in the banking sector in January was 4.88%, and then there was a gradual decrease during the months of February and March to reach 4.82% in April. . Since April, the trend of this report has been downward, which shows that more consumers and businesses are paying their loan obligations on time, and inflation, which has appeared at stable levels during this period, may have helped.
"Scan Intel" has analyzed the data to understand the trend of other credit reports. The figures show that compared to a year ago, during September the ratio of non-performing loans decreased by 0.66 percentage points. On the other hand, the ratio of non-performing loans net from provisions to regulatory capital decreased by 1.13 percentage points, compared to a year ago, while the ratio of non-performing loans net from provisions to shareholder capital decreased by 1.03 percentage points.
This improvement in the timely payment of obligations by debtors is also reflected in the increase in the financial performance of the banking sector. Specifically, the ROE ratio, which shows the level of efficiency with which the bank uses shareholder capital to generate profits, has increased by 12.82% within the year.
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