In the first half of 2017, an increase in the balance, deposits, and credits, a continuation of the positive trends which are visible in the citizens savings, capital, earnings and a decrease in the bad credits as a part of the total credits. On a systemic level, a positive financial result was realized and one can conclude that the banking sector is still stable, adequate capitalized and that liquidity is still satisfactory.
The balance of the banking sector at the first half of 2017 was 19 billion BAM and is 3.3% of 611 million BAM more than at the end of 2016.
Credits, as the primary activity of most banks, increased by 4.3% or 528 million BAM in the first half of the year and were 12.8 billion BAM as of June 30th, 2017. Positive trends from 2016 continued, which are confirmed by the increase in the credit system, namely an increase in the growth of credits granted to private companies than to private individuals. Credits granted to private companies increase by 5.3% or 304 million BAM so they were 6.1 billion BAM, or 47.3% of all credits, on June 30th, 2017. Credits to private citizens increased by 3.5% or 209 million BAM so their total decreased to 48.7% or 6.2 billion BAM as of June 30th, 2017.
Indicators of the quality of creids in the first half of 2017, as well as in the previous two years, became better, which is especially visible in the private sector. Somewhat larger credit portfolios, significantly lower influx of low-quality credits, as well as permanent write-offs had a positive effect on the coefficient of low-quality credits as part of the entire economy, which was 11.7% at the end of 2016 but is now 11%.
The long-term trend of growth of savings deposits, as the most significant segment of the deposit and financial potential of bankers, continued in 2017 with a growth rate of 1.7% or 137 million BAM, or 8 billion BAM in total.
According to the balance of success, on the level of the banking system in the Federation of Bosnia and Herzegovina, banks earned 152 million BAM in the first half year of 2017, according to the Banking Agency of FBiH.
(Source: Akta.ba)
