International Presence and Activities
BANKING SECTOR IS STABLE, WELL CAPITALIZED
AND PROFITABLE
→ Funding of banks in Slovakia is dominated by
retail and corporate deposits, LTD is 104%
→ Gross NPLs in Slovakia are below-EU, CAR is
above 17%
Slovak banks are profitable, albeit in recent years
profits came under pressure due to bank levy,
intense competition and margin pressure
→ In 2020, Bank Levy was increased from 0.20% of
the base (all liabilities ex equity) to 0.40%, but
amidst the COVID-19 pandemic, new government
agreed to scrap the levy from July 1, 2021, finally
ending this competitive disadvantage
ROE
(%, as of 3Q 2020)
Principal funding sources of
Slovak banking sector
(%, as of 2020)
other
equity
10.2%
issued bonds
1.5%
7.7%
interbank deposits 7.3%
2.5%
public deposits
70.8%
private deposits
NPL
(%, as of 3Q 2020)
18%
8%
16%
7%
14%
6%
12%
10%
5%
8%
6.0%
4%
2.8%
6%
3%
2.3%
4%
2.5%
2%
2%
0%
1%
-2%
0%
CENTOS
Source: NBS, EBA
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