FLASH NEWS
Banking sector interest expenses increased for the third year
2026-02-23 22:47:11 / EKONOMI&SOCIALE
The increase in interest expenses is mainly related to the increase in bank deposits last year. Statistics showed that the total value of banking sector deposits increased by 9% compared to the previous year.
The banking sector's interest expenses increased for the third consecutive year in 2025. According to data from the Bank of Albania, interest expenses reached 9.1 billion lek, an increase of 13.5% compared to the previous year.
The increase in interest expenses is mainly related to the increase in bank deposits last year. Statistics showed that the total value of banking sector deposits increased by 9% compared to the previous year.
Meanwhile, average deposit interest rates experienced a slight decrease in the local currency, while recording a small increase in the Euro. According to Bank of Albania statistics, the average deposit interest rate in Lek in November 2025 was 1.27%, down from 1.39% at the end of 2024. Meanwhile, for term deposits the average interest rate was 2.39%, down from 2.45% at the end of 2024.
For the Euro, the average interest rate on total deposits increased slightly to 0.81%, from 0.75% in December 2024, while for time deposits the average interest rate also increased to 1.57%, from 1.47% at the end of 2024.
However, it must be said that individual banks, especially during the summer season, have been offering significantly higher interest rates than the average. In particular, a group of medium-sized banks, which are showing ambitions to grow, are being aggressive in the price they offer for deposits and seem to have succeeded in expanding their market.
The increase in interest expenses has significantly slowed the growth of net interest income (interest income minus interest expenses) for the banking sector. For 2025, net interest income was 75.8 billion lek, an increase of only 0.3% compared to the previous year. The stagnation of net interest income caused the banking sector's profit to decline in 2025, after five consecutive years of growth.
Profit measured according to local supervisory standards of the Bank of Albania for 2025 was 35.6 billion lek, 4.7% less compared to 2024. The banking sector, like other sectors of the economy, has faced an increase in personnel costs and operating expenses in recent years.
For 2025, commercial banks' personnel expenses amounted to approximately 20.2 billion lek, an increase of 13.6% compared to the previous year. While other operating expenses of the banking sector amounted to 38.2 billion lek, an increase of 14.7% compared to the previous year.
Happening now...
ideas
top
Alfa recipes
TRENDING 
services
- POLICE129
- STREET POLICE126
- AMBULANCE112
- FIREFIGHTER128