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The survey, carried out among the eight largest banks in Bosnia, also showed that the demand for short-term loans has increased, while that for long-term credits has dropped.
Bosnian banks remain resilient to economic crises and were profitable in 2024 with the same trend expected throughout 2025. The net profit of commercial banks in Bosnia increased in the first nine months of 2024, according to the latest available data from the banking authorities of the two entities.
In the Federation, commercial banks posted a net profit of BAM494.8mn (€253mn), up by 14.3% y/y. Their revenue stood at BAM1.04bn in January-September. Deposits totalled at BAM25.3bn, while total loans stood at BAM18.7bn. The banking agency of the Federation provided no annual comparison figures.
In Republika Srpska, commercial banks posted a net profit of BAM197mn in the first nine months of 2024, up by 34% y/y. Loans stood at BAM6.4bn, up by BAM385 y/y.
Central bank data showed that the share of non-performing loans (NPLs) in Bosnia declined to 3.1% of total credits in the second quarter of 2024 from 4.2% a year earlier, and was also lower compared to the 3.4% at the end of the first quarter of 2024.
Bosnia’s banking sector remains well capitalised. The capital adequacy ratio (CAR) was 19.6% at end-June, up from 19.5% a year ago, and remained well above the statutory minimum of 12%. The CAR was slightly higher than the 19.5% in the previous quarter.
The banking sector's liquidity slightly decreased in annual terms as the ratio of liquid assets to total assets stood at 28.2% at end-June versus 28.8% a year ago. In quarterly terms, the ratio decreased from 28.5%.
The sector’s profitability, measured by the return on average equity (ROAE), which indicates the banks’ efficiency in using their capital, increased to 18.4% at end-June from 15.9% a year ago, while at end-March it stood at 18.5%.
5.2.3 Industry
Bosnia’s industrial sector has continued to be affected by the global economic effects of the Russian war in Ukraine since the second half of 2022. This will continue to have an impact on the country in 2025.
The Directorate for Economic Planning (DEP) estimated that in 2023-2026 a gradual economic stabilisation could be expected both globally and locally. However, in Bosnia the reform progress will also affect industrial performance. Improving the business environment in the country would boost the investment in new capacities. If the
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