Banks increased profits by 47% and say they are not profitable enough
Net profit of the banking sector soared 47% annually to €565m in the first half, the central bank NBS reported. Banks have increased credit rates, while deposit rates are rising much more slowly. As a result, their net interest income rose 30% to €1.071bn. Fee income rose 2% to €381m. Labor costs rose 10% to €368m. (finsider.sk)
VÚB bank increased its profit the most, almost doubling it to €135m. It almost matched the largest bank, SLSP, which increased its profit by 40% to €138m. SLSP has a different loan structure and has historically invested more in bonds, which has boosted its returns in the past when rates were falling. It is now being held back, as it would have earned more on loans where rates are rising faster. Tatra banka increased net profit by 43% to €96m and ČSOB by 78% to €73m. The Slovak Banking Association notes that banks in neighboring countries are more profitable than the Slovak banking sector.
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