Federation BiH banking sector makes profit

Federation BiH banking sector makes profit

The banking sector in the Federation BiH, one of the Bosnia and Herzegovina entities, according to banks’ reporting data as of September 30 2019, reports a positive financial result – profit in the amount of BAM 250.9 million, which is BAM 4.3 million or 1.7 per cent more than in the same period in 2018.

Total net assets at the banking sector level in the FBiH as of September 30, 2019, amounted to BAM 23.7 billion and BAM 1.6 billion, or 7.5 per cent higher compared to December 31, 2018.

Loans, with a share of 62.8 per cent, in the structure of total assets, recorded an increase compared to the end of 2018 in the amount of BAM 580.9 million or 4.1 per cent, so as of September 30, 2019, amounted to BAM 4.9 billion. Bank credit growth as of September 30, 2019, compared to the end of 2018, loans to individuals, private companies, non-banking financial institutions and other sectors were made, while lending to government institutions, banking institutions and public companies decreased, the FBiH Banking Agency announced.

Loans to legal entities increased by BAM 111.2 million or 1.5 per cent, so that as of September 30, 2019, amounted to BAM 7.6 billion, with a share of 50.9% in total loans. Loans to households in the same period increased by BAM 469.7 million or 6.9 per cent, with a share of total loans of 49.1 per cent as of September 30, 2019, amounted to BAM 7.3 billion.

Deposits reached BAM 19 billion, with the growth of BAM 1.4 billion or 7.7 per cent, and remained the most significant source of financing, with a share of 79.9 per cent in total liabilities.

Savings deposits, as the most significant and largest segment of banks’ deposit and financial potential, increased by BAM 517.8 million or 5.9 per cent to BAM 9.3 billion. Loans amounted to BAM 797.2 million, with the participation of 3.4 per cent in the total liabilities and decreased by BAM 65.8 million or 7.6 per cent compared to the end of 2018.

The total capital of banks in the FBiH as of September 30, 2019, amounted to BAM 3.2 billion, which is BAM 188 million or 6.3 per cent more than at the end of 2018, of which share capital amounts to BAM 1.3 billion.

In the FBiH on September 30, 2019, 15 commercial banks operated with 539 organizational units, employing a total of 6,745 persons./ibna

(1 EURO = 1, 95 BAM)