Tirana, Feb. 16 (AENews) – During 2005, the Albanian banking system increased for the first time the shareholders equity ratio resulting in growing levels compared to total assets levels.

For the third quarter of last year, total assets grew by 17% meanwhile shareholders equity grew by 26%, compared to third-quarter of 2004,according to Bank of Albania data.

Total assets reached LEK 495 billion, meanwhile shareholders equity was estimated at LEK 32.3 billion. Shareholders equity was only 6.55% of total assets, which is much lower than that of other developed
countries.

The report practically shows the amount of funds that investors have risked to manage US$ 4.6 billion in assets and the amount of funds that they have risked to profit an annual Return-on-Equity of 25% (ROE), which makes the Albanian banking market the best in eastern Europe for investments in this sector.

The investment-profit ratio has made improvements in these last years.
Profits have been furnished especially by free-of-concern investments in T-Bills as well as from high interest rate loans that most banks in Albania apply.

Albanian banking system figures in billion LEK
Indicators	Sep. ’05	Compared to Sep ’04
Total liabilities	493	19%
Private sector liabilities	426	18
of which…
Time Deposits	301.3	4.4
Demand Deposits	115.9
Shareholders equity	32.3	26
Assets
Total	493	19%
Cash flows	309.2	5.50%
Treasury Bills	178.7	-8.90%
Private sector loans	104.5	83.70%
Fixed assets	8.34	28%

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