BQK: In 2022 banks realised 140.3m euros in clean profits, the highest value since the establishment of the banking sector

According to the report, this performance of the sector was enabled by higher growth in revenues compared to increased spending.

“All revenues reached the value of 370.4m euros, which represents an annual increase of 15.0 per cent (15.4 per cent year ago). In increasing revenues, the main contribution was interest revenues, representing 71.1 per cent of total revenues. Within interest revenues, credit-interest collections contributed mainly to this growth, a category influenced by the significant increase in credit. Moreover, this year, revenues from interest from plastics in other banks and investments in valuable paper have increased significantly compared to the drop in the previous year”, the Economic Bulletin reported.

While the category of non-interest revenues, mainly from tariffs and commissions, marked much slower growth compared to a year ago -- 8.0 per cent from 31.0 per cent until December 2021 -- and reached the value of 92.7m euros.

The sector's expenditures, which marked higher annual growth against 12.4 per cent of 2.6 per cent, were also characterised and reached 230.0m euros. The contribution in this difference had an annual increase of 12.1 per cent, or 14.6m euros of total and administrative expenditures that largely reflects the increase in staff spending for 16.3 per cent (or 8.4m euros). This increase suggests the pressure of inflation in correcting workers' salaries in the banking sector.

In addition, the non-interest spending category marked increases compared to the decline in the preceding year, due to increased tariff and commission spending, as well as loan losses (.1 per cent increase or 2.5m euros increase).