Banks in the country earned nearly 37.4 billion lek, or about 374 million euros, last year. The amount that the country's 11 financial institutions earned is the highest ever, expanding by 15 percent compared to 2023.
"The reasons are mainly from the income generated by banks. There are two main products. Mainly from loan interests and commissions along with investments in government securities," said expert Artur Ribaj.
The profits harvested in the 12 months of 2024 exceed by 2 to 3 times the amounts collected in 2020, 2021 or 2022. One of the reasons is the fact of significantly higher interest rates on loans than on deposits.
"So the more the interest margin on deposits received and loans granted increases, the greater the amount of profit realized will be," adds the professor.
The sale of properties that has pushed Albanians to knock on the doors of banks like never before is listed as another reason. New loans for this purpose during 2024 reached 54.9 billion lek, an increase of 13 percent compared to 2023.
"Lending is the main supporter in financing the purchase of properties and assets, and being a loan, it will achieve significant rates of return for banks, which are resulting in these indicators that we have," said Artur Ribaj.
Despite the reduction of the base interest rate for the lek to 2.75 percent by the Bank of Albania, financial market experts estimate that banks in the country will continue to reap satisfactory profits this year. (A2 Televizion)
A2 CNN Livestream
MUND TE LEXONI GJITHASHTU
