Albania’s banking system was the most profitable in Southeast Europe, benefiting more net interest income from its assets, according to the latest report on the top 100 largest banks in the region, published by See News, an intelligence unit for Southeast Europe with its head office in Bulgaria. The net interest margin indicator that measures the ratio between net interest income and assets was 7.6% for Albania, being over twice the average of 3.4% in Southeast Europe.
Five banks operating in Albania were ranked among the largest 100 by assets in Southeast Europe, in the rankings of the 100 largest banks in Southeast Europe.
National Commercial Bank ranks 33rd, out of the 27th that last year, with a total asset of 3.5 billion Euros and profits of 60.2 million Euros.
Raiffeisen Bank is 42nd in Southeast Europe by size, with a total asset of 1.8 billion Euros and profits of 51.3 million Euros in 2018. Raiffeisen ranks sixth among the top 10 returning equity (ROE) banks in Southeastern Europe, ROE index of 22.7% and Return on Assets Returns (ROA) of 2.81%.
Of the banks operating in Albania, the list continues with Credins Bank taking the 47th place with assets of 1.6 billion Euros and profits of 9.7 million Euros. Intesa Sanpaolo Bank Albania was in the 55th place, with assets of 1.4 billion Euros and profits of 6.8 million Euros.
The ranking carries on with the Alpha Bank (89), American Bank of Albania (90) and Tirana Bank (91).
The report notes that in 2018, the Albanian banking system continued to be characterized by high levels of liquidity and capital adequacy, while banks’ balances continued to improve. But the report adds that in 2019, the Albanian banking sector faces challenges such as the still high level of non-performing loans, which could further exacerbate banks’ profitability and asset growth, as well as the slowdown of the euro zone economy in general and concerns financial situation of Italy in particular.