Page 128 - SE Outlook Regions 2023

landlords are trying to follow the global trends and improve [their
offering] by providing additional benefits to consumers.”

3.10.2 Banks
Serbian banks’ loan portfolio continued to expand in 2022. The loan
portfolio of Serbian commercial banks to the non-financial sector
continued its double-digit annual growth in September, amounting to
11.7% excluding the effect of exchange rate changes, the Bank of
Serbia said on November 24.

The growth rate is at the level of the regional average. Compared to
June, the growth of loans in the third quarter slowed down as a
consequence of the high borrowing base and maturity of loans from the
guarantee scheme.

During the third quarter, loans to companies increased by 14% y/y to
RSD1,635bn (€13.9bn) with a moderate deceleration compared to
June.

Observed by purposes, the biggest increase was recorded in
investment loans, followed by loans for liquidity and current assets.
The annual growth of loans to households slowed down from 9.8% in
June to 8.3% in September to RSD1,446bn.

This followed on from strong lending growth in Q2, when it accelerated
compared to the first quarter. The NBS noted that corporates from the
majority of sectors had stepped up their borrowing, notably companies
engaged in trade, energy and manufacturing.

At the same time, the non-performing loan (NPL) dropped in 2022.
The International Monetary Fund (IMF) noted in November Serbia’s
“well-capitalised and liquid banking system”.

128 SE Outlook 2023 www.intellinews.com