In the first four months of this year, banks in Slovenia made 248.8 million euros in profit before taxation, which is 14.6 percent less than in the same period last year.
The operation of the banking system remains relatively successful, and the main source of uncertainty is still the situation in the international environment, according to the Bank of Slovenia.
Profit after taxation amounted to 215.9 million euros, which is 16 percent less than in the first four months of last year, according to the latest monthly data on bank operations.
“The decrease in profit is the result of a drop in net income and an increase in net value adjustments and provisions. They have almost doubled compared to the same period last year, but they still make up a moderate share of the gross profit made by banks. The solvency and liquidity of the banking system also remain stable,” states the Bank of Slovenia.
Net interest income was 2.8 percent higher compared to the previous year and amounted to 481.8 million euros, while non-interest income was 2.8 percent lower and amounted to 196.8 million euros. The total gross income thus reached 678.6 million euros, i.e. 1.1 percent more than in the same period last year, reports SEEbiz.
Operating expenses increased by 7.5 percent to 380.6 million euros. Net impairments and provisions were 92.1 percent higher and amounted to 49.2 million euros.
The year-on-year growth of loans to the non-banking sector was the highest since November 2022 and amounted to 10.7 percent, which significantly exceeds the European average of 3.7 percent.
The most important segment of loan growth is still lending to households (+8.8 percent), with the monthly volume of newly approved housing and consumer loans also growing.
“These trends are mainly driven by high employment and real wage growth,” the central bank said.
Loans to non-financial companies, which grew by seven percent, strengthened slightly compared to the previous year, especially in the last few months. Loans to foreign clients also contributed significantly to this year’s growth.
The quality of bank placements remains at the level of the end of 2025. The share of non-performing exposures (NPE) is stable at 1.6 percent and without significant changes by individual client groups.
Banks recorded a solid inflow of household deposits in the first four months. The exception was a larger outflow in March, when some depositors directed part of their savings to purchase bonds issued by the state to citizens for the third year in a row. Deposits of non-financial companies decreased until April, which is usual for this part of the year. Companies repay loans, pay dividends to owners and redress to employees.
The Bank of Slovenia, as in previous quarters, assesses two risks as elevated – the assessment of macro-financial risk is primarily affected by the war in the Middle East, while cyber risks are further increased by the rapid development of advanced artificial intelligence models that can be used to carry out cyber attacks.
“We emphasize that the resilience of the banking system remains high with a stable outlook,” the central bank said.
