Publications

Interview with Ms. Liljana Shkodra, Head of Retail Banking at ABI Bank

ABI Bank appears to be placing increasing emphasis on retail lending. What are the Bank’s strategic ambitions for mortgage financing, and what concrete targets have you set for expanding this portfolio in the coming years?

Expanding and diversifying our offering for individual customers remains a strategic priority for ABI Bank, with lending serving as one of its core pillars. Within this framework, mortgage financing occupies a particularly important role, as purchasing a home is among the most significant financial decisions individuals and families make during their lifetime.

For this reason, we have designed our mortgage products to accommodate a broad range of income profiles while supporting customers throughout the entire property acquisition journey. This means taking into consideration not only financing needs, but also the associated costs of purchasing a property and the long-term affordability of loan repayments for households.

Looking ahead, our objective is to establish ABI Bank among the leading players in Albania’s mortgage lending market. To achieve this, we are continuously enhancing our proposition across key dimensions, including competitive interest rates, flexible repayment terms, financing limits, faster approval processes, and superior customer experience delivered through both our branch network and our dedicated mortgage lending centres.
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The mortgage market in Albania has become increasingly competitive in recent years. Do you think the market has reached its maturity, and where do you see the greatest potential for growth: first-time home purchases, housing upgrades, investment properties, or the refinancing of existing loans?

It is true that the banking sector has significantly improved its offerings in recent years; banks have consolidated their services and enhanced their operational capacities to a very high standard. However, I believe there is always room to do more or to improve further.

In my view, no segment of the market's potential should be overlooked, whether it involves new mortgage demand or the refinancing of existing loans, even though new lending remains the primary driver of portfolio growth. At the same time, we observe customer segments whose needs have evolved beyond current market offerings, and this represents a clear opportunity for growth.
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Increased lending must be accompanied by the maintenance of portfolio quality. How does ABI Bank balance its expansion goals with responsible lending, and what do current indicators show regarding the quality of the retail loan portfolio?

Mortgage lending has historically demonstrated superior portfolio quality compared to other lending portfolios. However, no risk management should be neglected at any stage of the process.

Firstly, our specialized mortgage lending centers, with a team 100% focused on this process, were established not only to provide dedicated service, but also because their specialization directly contributes to the quality of analysis and the mitigation of risk. Furthermore, branch staff undergo specific training tailored to this type of service. At the same time, our risk assessment practice, covering both the loan itself and the collateral, is quite robust to ensure a fair and consistent risk evaluation for this portfolio.
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What differentiates ABI Bank’s mortgage offering in a crowded market? Have you developed tailored solutions for specific customer groups such as salaried employees, young families, professionals, expatriates, or borrowers seeking to refinance loans from other banks?

Our mortgage proposition is designed to be both broad and inclusive, while retaining features tailored to the customer segments where we believe we can deliver the greatest value.

Whether for first-time homebuyers, salaried professionals, self-employed individuals, expatriates, or customers considering refinancing an existing mortgage, our products are structured to address their specific financing needs and financial objectives.

We also believe there is room in the market for financing solutions that more accurately reflect current property values, whether for apartments or villas. In addition, we see opportunities to serve borrowers whose existing mortgage arrangements no longer reflect competitive market pricing, offering them the possibility to optimize their financing costs through refinancing.
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Who is the targeted customer base for the new offer, and what are the financial and long-term advantages of buying a property via a mortgage loan at your bank?

Our core target segments include salaried employees with stable income streams and self-employed professionals. However, our approach remains broad and inclusive. Any individual with a clear property objective and the capacity to meet repayment obligations may benefit from our mortgage solutions.

Unlike many other nationalities, we Albanians have a strong desire to own our own homes, and this has consistently kept the market active in this regard. From a long-term perspective, despite temporary fluctuations, the value of a real estate investment has historically been appreciated relative to the cost of the loan financing that investment. Therefore, the key advantage lies in the financial viability of the investment itself, extending beyond the personal goal of homeownership.