trending Market Intelligence /marketintelligence/en/news-insights/trending/Sfnb-O3rN_lEr1ZlADUhtA2 content esgSubNav
In This List

Macedonia's Komercijalna banka eyes 6.4% pretax profit hike in FY'17

Blog

Balance Sheet Strategy in an Unusual Rate Environment

Blog

Investors' Views of the Industry Today & the Outlook for Tomorrow

Podcast

Street Talk | Episode 98: Regulatory scrutiny having cooling effect on community bank M&A

Blog

Insight Weekly: M&A outlook; US community bank margins; green hydrogen players' EU expansion


Macedonia's Komercijalna banka eyes 6.4% pretax profit hike in FY'17

Komercijalna banka AD Skopje expects its pretax profit to reach 928 million Macedonian denars in 2017, up 6.4% from the 2016 profit, the lender said in its 2017 financial plan approved by its shareholders April 5.

The expected profit increase is attributed to further improvement in the quality of the lender's loan portfolio during 2017, resulting in lower net impairments of financial assets. Profit before impairment is expected to decrease by 7.4%, mostly as a result of the smaller amount of planned collected written-off claims.

The lender also eyes a 3.0% increase in net interest income in 2017, while total assets are expected to grow by 3.6% to over 104.39 billion denars.

The bank also said in its development plan until 2021 that it expects its pretax profit to continue to grow in the next few years, reaching an estimated 1.32 billion denars in 2021, up by 51.4% compared with 2016. Net interest income of the bank is estimated to reach 3.25 billion denars at the end of 2021, an increase by 12.5% compared with 2016. Total assets will grow at an average annual rate of 3.5%, reaching 119.44 billion denars at the end of 2021. The 2017-2021 plan was also approved by Komercijalna banka shareholders during their April 5 meeting.

The shareholders also approved the payment of a per-share dividend of 150 denars from the lender's 2016 net profit, up from 125 denars paid for 2015.

The bank posted a pretax profit of 872.4 million denars and net profit of 779.4 million denars for 2016, up from 588.4 million denars and 525.1 million denars, respectively, in 2015.

As of April 5, US$1 was equivalent to 57.74 Macedonian denars.