2023-04-28 12:46:13
The banking sector achieved a net profit of 229.1 million euros in the first three months of this year in Slovakia. According to data from the National Bank of Slovakia, this means a year-on-year increase of 66 percent. At the end of March last year, the profit was at the level of 138 million euros. Net interest income, which makes up the largest part of the banking sector’s income, rose year-on-year by 27.6 percent to 520.2 million euros. Net income from fees and commissions increased by 2.6 percent to 185 million euros. According to the central bank, the current ability of banks to generate profit is a good prerequisite for maintaining capital strength in the coming period.
Last year, the profit of banks rose by more than 14 percent to approximately 832 million euros. In 2021, banks’ profit increased by roughly 55 percent. Since the beginning of 2019, the national bank has observed a year-on-year decrease in net interest income, and thus its negative contribution to the growth of net profit. This trend continued in 2021 as well, although the pace of decline has slowed significantly. In 2022, change came. After years of declining interest margins, increasing interest rates began to be reflected significantly in growing net interest income. At the same time, banks managed to maintain credit growth.
In terms of profit volume, banks already exceeded pre-pandemic levels last year. Within Europe, however, Slovak banks tend to rank among the less profitable. Despite this, the year 2022 was favorable from the point of view of the management of Slovak banks, according to the NBS.
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