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Home  > Bank of Slovenia  > Press Releases  

Press Releases

   

Date   Title of a Press Release
20.07.2017   Press release - Monthly information on bank performance in May 2017
19.07.2017   Press release - Summary of Macroeconomic Developments, July 2017
16.06.2017   Press release - New Macroeconomic Projection for Slovenia and Financial Stability Review June 2017
25.05.2017   Press release - ESCB central banks welcome the publication of Foreign Exchange Global Code of Conduct
25.05.2017   Press release - Monthly information on bank performance in March 2017
04.05.2017   Press release – Bank of Slovenia will contribute EUR 43 million of its surplus from 2016 to the state budget
24.04.2017   Press release - Rethinking Monetary–Fiscal Policy Coordination
21.04.2017   Press release - Spring Meetings of the IMF and the World Bank Group
13.04.2017   Press release - New Economic and Financial Developments report and Monthly information on bank performance in February 2017
04.04.2017   Press release - New €50 enters circulation
28.03.2017   Press release - IMF-Slovenia: Staff Concluding Statement of the 2017 Article IV Mission
14.03.2017   Press release - Handbook for Effective Management and Workout of micro, small and medium enterprise NPLs published
14.03.2017   Press release - Analysis of fees charged by banks and savings banks for payment services-2016
01.03.2017   Press release - President of the Deutsche Bundesbank give a speech at the Bank od Slovenia
22.02.2017   Press release - Summary of Macroeconomic Developments and Monthly information on bank performance in December 2016
07.02.2017   Press release - Successful migration of the Slovenian environment to the TARGET2-Securities settlement platform
02.02.2017   Press release - ECB president Mario Draghi in Ljubljana, the 10th anniversary of the introduction of the euro in Slovenia
26.01.2017   Press release - A commemorative 2-euro coin
11.01.2017   Press release - Financial Stability Review and Economic and Financial Developments report
         

Press release - Monthly information on bank performance in May 2017

Ljubljana, 18. July 2017

The Governing Board of the Bank of Slovenia has discussed and approved the Monthly information on bank performance*.

Year-on-year growth in total assets was positive in May for the third consecutive month, although the increase of 1.5% in total assets was primarily the result of an increase in liabilities to the Eurosystem in March and deposits by the non-banking sector, most notably household deposits. On the investment side, the main increase was recorded by liquid assets, while loans to the non-banking sector were less significant.

Year-on-year growth in deposits by the non-banking sector remained solid in May, at 5.8%. Household deposits have accounted for three-quarters of this year’s increase in deposits. Growth in these deposits declined slightly to 5.7%. Sight deposits are continuing to increase, and account for 66% of total deposits by the non-banking sector.

Growth in loans to the non-banking sector is gradually increasing, reaching 3.7% in May. The banks are still increasing their lending activity to households. The stock of household loans in May was up 6.9% or EUR 586 million in year-on-year terms. Growth in consumer loans, which in previous years had been negative for a long period, increased to 11.6%, while growth in housing loans stabilised at just over 5%. Loans to non-financial corporations declined slightly in May, although the year-on-year rate of growth increased to 3.4% as a result of the contraction in loans in the first half of 2016. The net increase in loans to non-financial corporations over the preceding 12 months reached EUR 286 million.

The rising pace of growth in loans has not yet been fully reflected in the breakdown of earnings. The banking system’s gross income is continuing to decline. This is primarily attributable to the decline in net interest income, which at 8.4% is still relatively pronounced. The banks have also seen a decline in net non-interest income, while operating costs remain comparable to the same period last year. The amount of impairments and provisions released by the banks over the first five months of this year was less than in the same period last year, which is adversely affecting this year’s pre-tax profit. The banks generated a pre-tax profit of EUR 210 million over the first five months of the year, down 14% on the same period last year.

The increased pace of credit growth was reflected in a further decline in the proportion of the banks’ portfolio accounted for by non-performing loans. The quality of the credit portfolio as measured by the NPE ratio in line with the broader EBA definition of non-performing exposures has been improving in 2017. The NPE ratio declined by 0.8 percentage points over the first five months of the year to 7.7%. The improvement in the credit portfolio is also evident in exposures to corporates. The NPE ratio for corporates stood at 15.3%, down 1.6 percentage points on December 2016.

The increase in credit growth also brought an increase in capital requirements in the first quarter. The capital adequacy of the Slovenian banking system declined slightly in the first quarter, but nevertheless remained above the euro area average. The total capital ratio of the Slovenian banking system reached 20.6% in March on an individual basis, and 18.8% on a consolidated basis.

The stock of liquidity in the banking system remains relatively high, although as the structure of bank liabilities shifts in the direction of a higher proportion of sight deposits, the need for liquidity is changing. It is important for banks to also adapt to this process by adequately managing their liquidity.

*publication is available only in slov. language http://www.bsi.si/iskalniki/porocila.asp?MapaId=1329

BANK OF SLOVENIA
Slovenska 35
1505 Ljubljana
Slovenija
Phone: +386 1 47 19 000
Fax: +386 1 25 15 516 
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Bank of Slovenia
Slovenska 35
1505 Ljubljana
Slovenia
Phone: +386 1 471 90 00
Fax: +386 1 251 55 16
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