Net impairments and reservations in the first 10 months of the year amounted to 161,2 million euros, According to a Bank of Slovenia report on the business of Slovenia’s banks, that’s 65,5 percent less than in the same period last year. Lower costs for impairments and provisions for bad loans significantly contributed to this year’s better business results. Earnings before tax stood at 235,1 million euros, which is more than 100-times the sum of one year ago.

After stagnating for three months, the share of bad claims i.e. those with delays over 90 days, rose by 0,3 percent month-on-month in October, to 10,8 percent. Compared to the end of December last year, the share has thus decreased by 1,1 percentage points.

Among companies the share of bad claims is considerably higher and is decreasing at a slower rate. At the end of October it amounted to 17,3 percent, which is 0,3 percentage points less than in the previous month, and only 0,4 percentage points less than at the end of 2014.
Banks will now have to face an even bigger challenge – falling income. The incomes are still lower than in 2014.

Income from interest rates in the first ten months stood at 623,4 million euros, 10,1 percent lower than in the same period last year. Non-remunerated income stood at 329,4 million euros, 1,9 percent less than in the same period last year. The dynamics of falling, when considering the nine-month figures under both headings, has somewhat slowed down, especially with the non-remunerated income. Meanwhile, year-on-year operational costs have fallen by 0,7 percent and have reached 556,5 million euros.

October saw a temporary stop in the fall of the total assets of banks. At the level of the banking system they have reached a little less than 38 billion euros and have risen by 1,9 percent on a monthly level. Year-on-year the total assets are still lower by 3,3 percent.

A. Č.; translated by K. J.