American Bank of Investments continues its positive growth and record results in the Albanian banking market in the second quarter of 2016.
ABI continued to maintain its record position in the most important indicators of the banking system in the first half of 2016. This is a continuation of the positive results for the first quarter of the year with regard to capital adequacy, profitability, and increased bank deposits and assets.
ABI is the most profitable institution in the market as a result of improvements in its loan portfolio quality and reduced administrative costs. High profitability has led to a record capital adequacy ratio for the bank, the highest in the banking sector in Albania, at 23%. The high level of deposits and capital have contributed to an increase of 19% in the Bank’s assets with a total value of EUR 229 million.
In its subsequent meeting, the Governing Board analyzed the performance of ABI during the second quarter of 2016 in the context of the overall situation of the banking sector and the Albanian economy in general. The Board remains cautious in positioning the Bank in an environment of low profitability as a result of low interest rates. The Board appreciates the importance of the measures taken so far to reduce operating costs, modernize and increase the effectiveness and efficiency of operating systems, branch upgrades, and the opening of VIP services.
Gregory Katz, NCH Capital’s representative, stressed that the results for the first half of the year have laid a healthy foundation for sustainable and profitable bank growth for 2016 and beyond.
Lorenzo Roncari, Chairman of the Board of Directors, underlined, “Albania’s economic indicators foresee a moderate medium-term growth conditioned upon increased foreign direct investment and improved domestic exports. ABI has completed many of the stages of consolidating its balance sheets and operations and will now play its part in supporting the economic growth of clients and the country.
Meanwhile, Board Member Mark Crawford said, “The combination of existing staff experience with the new direction and the introduction of American culture with the slogan Invest in Optimism! is delivering tangible and positive results.”
ABI CEO Andi Ballta stressed that restructuring and reorienting the Bank to large and medium-sized clients, without excluding the importance of small businesses, creates the security necessary for long-term and sustainable profits. The second half of 2016 will focus on rapid lending in line with the expected growth of the economy in the years ahead. The synergies between ABI and Tranzit Finance will continue to improve the quality of the loan portfolio while maintaining cost management efficiency.
ABI is part of funds managed by NCH Capital, one of the largest US investors based in New York and with more than USD 3 billion under management.