The Bank of Albania announced that at the end of 2022, non-performing loans reached the level of 35.7 billion Albanian lek, decreasing by 2.4 billion Albanian lek, or 6.38% compared to the previous year.

According to the Central Bank’s Annual Report, the gross non-performing loan ratio experienced a 0.7% decline on an annual basis, reaching 5% at the end of 2022.

In the portfolio of regular loans, there was an increase in “standard” classified loans by 0.62 percentage points and “watch-listed” loans by 0.05 percentage points.

Meanwhile, in the portfolio of non-performing loans, there was a decrease in the categories of “doubtful” and “loss” classified loans by 0.05 percentage points and 0.65 percentage points, respectively.

Regarding the quality of the loans classified by the type of subject, the non-performing loan ratio for businesses decreased to 6%, while for individuals, this indicator reached 3.8%.

According to the data reported by the Bank of Albania, 86% of the loan portfolio is collateralized.