In the first three quarters of 2024, total assets of credit institutions increased by 4.3% from the end of 2023 and stood at EUR 81.9bn. Assets increased in most credit institutions.
Total loans and advances grew from the end of 2023 by EUR 2.7bn or 4.2%. Loans continued to increase in almost all sectors, especially loans to households, other credit institutions and central banks. However, this was partially offset by the decrease in highly liquid assets (assets with the central bank and other demand deposits). Non-performing loans and advances (hereinafter referred to as ‘NPLs’) declined by 0.6%, primarily those in the portfolio of loans to non-financial corporations, while those in the household portfolio increased.
The share of NPLs in total loans and advances at the end of the first three quarters of 2024 decreased from the end of 2023, to 2.5%. 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 4.8% and of households from 4.2% to 4.0%.
The operations of credit institutions generated EUR 1.2bn in profit in the first three quarters of 2024. Profitability indicators rose from the end of 2023. The return on assets (ROA) thus rose from 1.8% to 2.0% and the return on equity (ROE) rose from 15.5% to 17.6%, driven by an increase in interest income, with a large contribution coming from income from overnight deposits with the CNB, as well as the growth in interest income from other sectors, in particular non-financial corporations.
The key indicators of banking system capitalisation remained high, with the total capital ratio standing at 23.0%. 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 the first three quarters of 2024, all credit institutions met the prescribed minimum liquidity requirement of 100%, with the average LCR standing at 232.6%.