Banks in Slovenia posted €1.14 billion in pre-tax profit in 2023, more than double the figure the year before. Net profit increased by 119% to €1.10 billion, figures released by he central bank show.

Net interest income increased by 93% on 2022 to €1.44 billion, as non-interest income decreased by 6% to €535 million. Commissions were down by 2.8% to €387 million.

Banks' total gross income expanded by 50% to €1.98 billion, and operating costs increased by almost 10% to €830 million. Net income rose by 106% to €1.15 billion.

Banks did not experience any serious problems with their loan portfolios last year. Net impairment and provisions dropped by 28% to €10.2 million.

The volume of loans declined. Loans to the non-banking sector dropped by 2.2% year-on-year to stand at €26.93 billion at the end of December.

This downward trend was mainly driven by a decline in loans to companies and other financial organisations - lending to companies contracted by 4.9% to €9.97 billion.

Meanwhile, loans to households further increased - by 3.3% to €12.56 billion at the end of the year. The growth was mainly due to a 12% increase in consumer loans. The volume of home loans increased by 0.6%.

Cash deposits continued to increase in 2023. The total volume of non-banking sector deposits stood at € 41.06 billion at the end of December, an increase of 3.3%. Companies' deposits rose by 11% to €10.78 billion, and household deposits went up 2.8% to €26.51 billion.

Banks' balance sheet total expanded by 5% to €53.08 billion at the end of 2023. In absolute terms it grew by some €2.51 billion last year.

At the end of last year, banks in Slovenia were about as favourable as eurozone banks when it came to fixed-rate home loans, while consumer loans were more favourable in Slovenia.

Regarding fixed-rate corporate loans, Slovenian banks were meanwhile more expensive than the euro area average, shows data by the central bank.

But when it comes to variable interest rates, Slovenian banks offered less favourable home loans than the eurozone average and more favourable consumer loans. Their corporate loans were roughly level with the euro area average.