Statistical and Econometric Analysis of Financial Indicators for Six Albanian Commercial Banks

Fiqiri Baholli

doi:10.5901/mjss.2014.v5n23p645

Abstract

The banking system in Albania has made important challenges during last 23 years. Intermediation of banks have served to Albanian economic development through lending and payments system, while mobilizing the savings of households and other financial sources. There are some studies on the tendencies and performance of main financial indicators for the banking system. However, these studies realized from supervisory authority (the Bank of Albania) are giving more information on aggregate level. Our study problem, in this article, is an approach on the development and performance of some banks in Albanian banking system. Our objective is to show how some important ratios of the banking system have evolved in time, the differences among the banks and in general their efficiency and performance. Data we are using are main financial indicators of 2009 – 2012 from six month series. The main ratios are: ROA (Return on Assets): X1 ROE (Return on Equity – net return after taxes): X2 Loans / Deposits: X3 Equity / Risk Weighted Assets: X4 Expenses / Revenues (expenses for one ALL1 revenue): X5 Non Performing Loans / Total Loans: Y The data used belong to Raiffeisen Bank, National Commercial Bank, Credins Bank, Intesa San Paolo, Alpha Bank, Procredit Bank. DOI: 10.5901/mjss.2014.v5n23p645

Highlights

The commercial banking system in Albania at the end of 2013 have 16 banks operating into the following groups, as reported from the central Bank of Albania in “The Financial Stability Report” :
As at end December 2013, by capital origin, the banks operating in Albania were dicided as follows: - Austrian owned: Raiffeisen Bank, - Italian owned banks: Intesa Sanpaolo Bank- Albania, Veneto Bank, - Greek Owned banks: Alpha Bank-Albania Tirana Bank, Branch of National Bank of Greece, - French owned banks: Societe Generale Bank-Albania, Emporiki Bank, - Albanian owned banks: Credins Bank, Union Bank
Non-performing loans (NLP) are showing a positive trend which is a serious problem for Albanian banking system

Summary

Introduction

The commercial banking system in Albania at the end of 2013 have 16 banks operating into the following groups, as reported from the central Bank of Albania in “The Financial Stability Report” :. - Banks Peer Group 2 (each sharing 2-7% of total banking sector’s assets): ProCredit Bank, Emporiki Bank, Branch of National Bank of Greece, Societe Generale Bank of Albania, Alpha Bank-Albania, Union Bank,. - Banks Peer Group 3 (each sharing over 7% of total banking sector’s assets): Raiffeisen Bank, Credins Bank, National Commercial Bank, Intesa Sanpaolo Bank-Albania, Tirana Bank. As at end December 2013, by capital origin, the banks operating in Albania were dicided as follows: - Austrian owned: Raiffeisen Bank, - Italian owned banks: Intesa Sanpaolo Bank- Albania, Veneto Bank, - Greek Owned banks: Alpha Bank-Albania Tirana Bank, Branch of National Bank of Greece, - French owned banks: Societe Generale Bank-Albania, Emporiki Bank, - Albanian owned banks: Credins Bank, Union Bank

Objectives

Methods

Results