In 2024, total assets of credit institutions increased by 7.1% from the end of 2023 and stood at EUR 84.2bn. Most credit institutions’ assets increased and the number of credit institutions remained unchanged at 20 credit institutions.
Total loans and advances grew from the end of 2023 by EUR 4.0bn or 6.1%. Loans continued to increase in almost all sectors, especially loans to households and financial institutions. This also partly resulted in the decrease of highly liquid assets (assets with the central bank and other demand deposits) and loans to the general government. Non-performing loans and advances (hereinafter referred to as ‘NPLs’) declined by 4.2%, primarily those in the portfolio of loans to non-financial corporations, and to a lesser degree in the household portfolio.
The share of NPLs in total loans and advances at the end of 2024 decreased from the end of 2023, to 2.4%. The quality of loans to the two most important institutional sectors continued to improve: the share of NPLs of non-financial corporations went down from 5.1% to 4.5% and of households from 4.2% to 3.7%.
Credit institutions’ operations generated EUR 1.5bn in profit in 2024. Profitability indicators improved from the end of 2023: return on assets (ROA) increased from 1.8% to 1.9% and return on equity (ROE) from 15.5% to 16.4%. This was a result of the increase in (net) operating income from all sectors.
The key indicators of banking system capitalisation remained high, with the total capital ratio standing at 23.8%. All credit institutions had total capital ratios in excess of the prescribed minimum of 8%.
Banking system liquidity measured by the liquidity coverage ratio (LCR) was high. At the end of 2024, all credit institutions met the prescribed minimum liquidity requirement of 100%, with the average LCR standing at 230.9%.