Monthly information on banks performance
Governing Board of the Bank of Slovenia discusses the Monthly briefing on bank performance in February 2018
The banking system’s total assets reached EUR 38.1 billion in February 2018, up 3% in year-on-year terms. After slowing significantly in December, growth in loans to the non-banking sector (NBS) in-creased to 5.8% in the first two months of this year, partly as a result of the introduction of the new IFRS 9 from the beginning of the year. The larger increase in loans to non-financial corporations in February was not solely attributable to the introduction of IFRS 9, but also to actual lending activity. The year-on-year rate of growth reached 3.1% in February. Household loans have been growing more slowly since last October, the year-on-year rate reaching 6.7% in February. A slow-down is being recorded by housing loans and consumer loans alike: year-on-year growth in the for-mer slowed to 4.4%, while year-on-year growth in the latter remains relatively high despite the de-cline, at 12.1%.
Deposits by the NBS continued to record year-on-year growth of 5.3% for the third consecutive month. For the moment the banks are still able to fund the increase in loans to the NBS solely through deposits by the NBS. The solid growth in household deposits during the first two months of the year was partly attributable to a seasonal effect. Year-on-year growth in household deposits strengthened to 5.7% in February. Growth in deposits by non-financial corporations remains high, at 10.9% in February. The proportion of deposits by the NBS and household deposits accounted for by sight deposits increased in the early part of the year. The figures stood at 69.2% for deposits by the NBS, and 71.8% for household deposits in February.
The NPE ratio declined to 5.6% in February, as NPEs declined to EUR 2.4 billion. The largest decline in the NPE ratio over the first two months of the year was recorded by the non-financial corporations sector, which nevertheless remains the sector most burdened by NPEs, with a ratio of 12.1%. The NPE ratio for the non-residents sector declined to below the average for the banking system, at 4.9%.
The banks generated a pre-tax profit of EUR 77 million in February 2018. The figure was down 6% in year-on-year terms, primarily as a result of a decline in interest income and non-interest in-come. The banks released impairments in the total amount of EUR 14.7 million over the first two months of this year.