The profit of the banking sector in Bosnia and Herzegovina (BiH) after taxation on September 30th 2017 has increased to record of 318.4 million BAM, which is 48.1 percent more than in the same period of 2016 when the profit was 214.9 million BAM.
The profitability increase in 2017 has jumped: after 119.6 million BAM in the first quarter, the profit rose to 215.2 million BAM for the first half of the year, and then jumped to 318.4 million BAM after nine months.
The banking sector (a total of 23 banks) has partly improved the credit growth business, which has revived somehow compared to the earlier period, since, according to Central Bank of BiH (CBBH) data, the borrowing of money in September of 2017 increased by 6,4%, amounting to a total of 18.1 billion BAM, which was more contributed by the corporate than the retail sector (8.3% growth versus 6.8% growth).
Acceleration in 2017 happened mostly due to credit growth for the nine months (September compared to December 2016) of 5.3%. Positive development has also occurred in the segment of deposits which, compared to the previous period, grew at a rate of 11.1 percent, reaching the amount of 19.1 billion BAM. Deposit growth was driven by the growth of household savings which exceeded 11 billion BAM (or 11.02 billion BAM).
Total revenue of banks amounted to 1.067 billion BAM and is higher by about 9.4% compared to the nine months of 2016, when it was 975.5 million BAM. Net interest income amounted to 619.4 million BAM and recorded a modest increase of 3.47% compared to last year.
(Source: Fokus.ba)
