Impairment expenses on financial assets also increased significantly in the first quarter, reaching EUR 149 million, which was significantly higher than a year earlier.
The total assets of the banking system grew by about 3% and reached nearly EUR 119.5 billion. The banks’ liquidity position remains stable, with the liquidity coverage ratio at around 278%, indicating a high ability to cover short-term liabilities.
Lending activity is also picking up. The total volume of loans increased by about 7% and reached over 79 billion euros. The largest share of the growth comes from lending to households and non-financial enterprises, with an increase in housing loans. There is also growth in loans to the state sector and financial institutions.
The deposit base is also expanding, with the total amount of deposits reaching almost EUR 100 billion. Household deposits, as well as bank and state institutions’ deposits make a major contribution to this, while a decline is observed in some financial enterprises.
At the same time, the share of non-performing loans is slightly increasing. They reach just over 2 billion euros and represent about 2.8% of all loans. Their net size is also growing, although their share in the total loan portfolio remains relatively low.
Overall, the data show rising activity in the banking sector, stable liquidity and a moderate increase in credit risk, combined with continued increases in deposits and lending.
