The ratio of non-performing loans (NPLs) returned to a downward trend in April. According to statistics from the Bank of Albania, the NPL ratio declined to 3.75%, down from 3.85% recorded in March. The indicator also continued to decrease on an annual basis, compared to 4.03% in April 2025.

The non-performing loan ratio is currently at its lowest level in the past 18 years.

In absolute terms, the stock of non-performing loans is estimated at approximately 36.3 billion lek. However, the value of bad loans increased by 3.4% compared to a year earlier.

For the time being, the NPL ratio appears to be maintaining its downward trend despite concerns related to the rapid growth of lending in recent years. Strong macroeconomic performance and the continued expansion of the loan portfolio are having a positive impact on the performance of overdue loans.

At the end of April, the outstanding credit to the economy reached 968.2 billion lek, an increase of 9.5 billion lek compared to March. On an annual basis, the loan portfolio to the economy grew by 11% compared to the same period last year.

Measures introduced by the Bank of Albania last year appear to have started producing results in slowing mortgage lending to individuals. Nevertheless, this slowdown has been offset by growth in consumer lending and an acceleration in the expansion of the business loan portfolio.

The banking sector continues to maintain positive growth, while also preserving strong financial performance and asset quality.