Gross assets of Serbia’s banking sector rose by a nominal 9% to RSD 3.16tn (EUR 27.8bn)

Total gross assets of Serbia’s banking sector rose by a nominal 9% to RSD 3.16tn (EUR 27.8bn) as of end-2012, with their growth speeding up from 5.9% a year earlier. Total loans to companies and households rose by a nominal 10.1% to RSD 1.75tn at end-2012, and total corporate and household deposits expanded by 11.1% to RSD 1.42tn.
All three growth rates as of the end of last year outpace slightly the depreciation of the Serbian dinar against the euro over the period. On the other hand, the three growth rates are slower that annual CPI inflation in December (12.2%), which means real growth was negative.The share of NPLs of total gross loans was 18.6% at end-2012, down 0.4 pps y/y and 1.3 pps q/q.
The capital adequacy ratio of Serbia’s banking sector was 16.4% at end-September 2012, continuing a downward trend, which started in 2011.The central bank said the liquidity of the sector was satisfactory at end-September 2012.
The pre-tax profit of Serbia’s banking sector decreased by 52.3% on the year to RSD 12bn in Jan-Sep, but the full-year performance in 2012 may have been better than the one in 2011.

After undergoing a five-month receivership and reporting a loss of RSD 29.7bn for 2011, Serbian commercial bank Agrobanka saw its licence revoked on May 25, 2012. Some of Agrobanka’s assets and liabilities were transferred to the newly created bridge bank Nova Agrobanka. Eventually, some assets and liabilities of the bridge bank were assumed by healthy local lender Postanska Stedionica in late October.
To Know More : Serbia’s banking sector