The level of non-performing loans this year has seen a constant fall, reaching the lowest levels in years. According to the Bank of Albania, non-performing loans at the end of June fell to a level of 15.6%, which is the lowest level since mid 2011.
This drop has helped in the improvement of banks’ financial statements, due to the significant reduction of expenses for provisions. According to the data supplied by the Bank of Albania, for the first six months of the year, banks spent less than 1.4 billion ALL for provisions, while for the same period a year ago, they had spent three times more. On the other hand, extraordinary revenues, which consist of revenues from the sale collaterals, amounted to 1.5 billion ALL, or four times more compared to the same period a year ago.
