Annual Report 2010 03 August 2011 - Banka Qendrore e ...

CBK
Annual Report 2010
capital adequacy indicators respectively “tier I capital / total risked assets” and “total
capital / total risked assets” in 2010 is evidenced to be 15.6 percent respectively 18.7
percent from 15.0 and 18.0 percent that were in 2009. The growth of capital adequacy
indicators is attributed to the growth of total capital by a faster trend compared to the
growth of total risked assets. While the total capital recorded a growth of around euro 30.1
million or 12.5 percent (supported by constant growth increase of profits), the total of risked
assets increased to around euro 113.9 million or 8.5 percent (resulting from constant
growth of loans and investments in securities as well as placements ratio) compared to
2009.
e) Banking System Liquidity
Banking system in general continued to have satisfactory liquidity indicators, although this
indicator compared to last year reflects a declining tendency. In 2010, the indicators ‘’liquid
assets / total assets” and ‘’liquid assets / total deposits are estimated 37.3 and 45.0 percent,
compared to 38.8 and 46.4 percent that were in 2009. This has mainly come as a result of
slow growth trend of total deposits, driven to a considerable extent by the abovementioned
withdrawal of PTK dividend and by rapid growth of total loans.
f) Banking System Profitability
The banking system net profit outcome in the end of 2010 is reported to be around euro 32.9
million, which compared to 2009 is by euro 5.5 million or 20.0 percent higher. The key
factors influencing on the increase of profits were: the increase of interest income with a
faster trend compared to 2009, respectively by euro 11.2 million or 6.8 percent and the net
increase from provisions with around euro 4.0 million or 15.7 percent compared to 2009.
The abovementioned factors had an impact on the performance of profitably indicators;
respectively the return from average assets (ROAA) and the return from average equities
(ROAE) evidenced a slight growing trend, from 1.5 percent and 13.9 percent that were in
the end of 2009 to 1.5 percent and 14.9 in the end of 2010.
g) Performance of Microfinance Institutions
The number of Microfinance Institutions (MFI) and Non-bank Institutions (NBI), the
activity of which is lending, was seventeen (17) in the end of 2010.
Loans active portfolio in the end of 2010 was euro 115.8 million, which represents an
annual growth of euro 6.5 million or 5.9 percent. Loans, as the key activity of these
institutions, consist around 92.7 of total equities. Loan portfolio during 2010 recorded
deterioration in quality. Loans quality indicators, respectively the ratio between
problematic loans and total loans, as well as the ratio between non-performing loans and
total loans is evidenced at the ratios of 4.4 percent and 3.6 percent, while in the end of
2009, these ratios were evidenced with 3.1 percent and 2.6 percent, respectively. Also, due
to weaknesses evidenced in corporate management, CBK had to appoint a temporary
administrator in one of this institution in the beginning of 2011.
Negative movements in microfinance sector in 2010 are also noticed in profitability
indicators. Return from average assets (ROAA) and return to average equities (ROAE)
recorded negative rations of minus 1.6 percent, respectively minus 5.5 percent. These
indictors recorded a significant decline compared to the ratios of 1.4 percent, respectively
4.3 percent in last year driven by a considerable growth of provisions expenditure from the
loss of loans, with an annual growth of euro 3.5 million or 117.6 percent.
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