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NBS: Despite Last Year's Slump in Profits Slovak Banks Are Stable
Monday 12 April 2010 Zoom in | Print page
Bratislava, April 12 (TASR) - The Slovak banking sector recorded an almost 50-percent slump in profits in 2009 in the wake of the economic crisis, yet the sector's development and situation can be called stable, according to a member of the country's central bank NBS.
Slavomir Stastny, head of NBS's department of the supervision and regulation of the Slovak financial sector, told a press conference on Monday that the country's banking sector and related institutions are expected to easily withstand any foreseen developments as well as a situation deteriorating beyond expectations.
The drop in profits was spurred on by a hike in the banks' expenses incurred to cover losses from loans, combined with stagnation in incomes from interests and a fall in currency exchange revenues following Slovakia's accession to the eurozone.
According to Marek Licak, who is in charge of NBS's department for risk analysis on financial markets, the first three months of 2010 indicate that the banks' profits will be higher in 2010 than in 2009. By way of example, the profits in February were higher by 15 percent year-on-year.
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