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INTERVIEW
Banks in Albania during 2019 and the horizon for 2020 Interview with CEOs of AAB member banks BANKIERI: 1. Another challenging year, like 2019, is closing for the Albanian banking sector. What was your bank’s performance and key achievements & developments in this regard? 2. According to your bank’s perspective, what are the main challenges for the Albania banking system, in the wake of shaping and implementing re-modelling for the national economy, in the near future and beyond?
BANKA KOMBËTARE TREGTARE Seyhan Pencabligil CEO & Board Member
1 We broadly achieved our financial and operational targets in 2019. Our return on equity for the year is 17 per cent in US$ terms, which is quite satisfactory, especially considering that we remain by far the largest bank in the country. 6
Bankieri
January 2020
We have accelerated investments in technology to improve service quality. The ATM fleet is renewed with the latest model of cash recycle-type machines; e-banking and mobile banking platforms remain sector leaders etc. We have also reorganized the head office structure and undertaken a largescale rotation among managerial staff across the Bank. Thanks to these achievements, BKT has been awarded as the best bank in country again by The Banker, Euromoney, Global Finance and EMEA Finance magazines in 2019. 2 The main challenge for the banks is that the non-performing loans ratio, although falling steadily, remains high, especially in the context of very low loan interest rates. The banking system must educate the corporates to improve their governance, so that such low rates, particularly in Euro, can be justified. Even the largest corporates in the country do not
produce financials audited by independent international auditors, but expect to be financed at very low rates, for instance. Second big challenge for the banks is the scarcity of bankable/ feasible large-ticket projects. Other than PPPs, which have become too political and controversial, few big projects come to our desks. Most of the current activity of the banks’ corporate departments now is to refinance the existing clients of the other banks with even more favorable terms. Finally, all banks must wake up that fintech threat is next to the corner. You either digitalize, or die. We are losing our sleep over this, because even if you are the best bank in the country, you may lose your clients, all of a sudden, to Google or Amazon, for example.
