As per the preliminary figures released by the Central Bank of Montenegro (CBCG), the country’s 11 commercial banks reported a profit of 165.1 million euros last year. This marks an increase of 19.1 million euros, or 13.06 percent, compared to the same period in 2023.

The supreme monetary authority conveyed this information to “Vijesti,” noting that the primary driver behind the rise in profitability is attributed to income generated from interest, fees, and commissions.

All banks reported profitable outcomes based on preliminary data.

Last year, banks collectively earned 459.5 million euros from interest, fees, and commissions – an increase of 55.6 million euros compared to the end of December 2023.

“As per the preliminary data, total bank income stood at 500.5 million euros at the end of December, reflecting an increase of 57.1 million euros or 12.88% relative to the end of 2023. The primary source of bank income derives from core income (net interest income and net income from fees and commissions), which amounted to 343.6 million euros at the end of December 2024, representing 68.88% of the total income,” stated Milan Remiković, the Director of the Control Sector, emphasizing that the growth in core income is the main factor behind the profitability increase.

According to preliminary information, total interest income reached 298.9 million euros at the end of the last year, constituting 59.72% of the total bank income. In comparison, the previous year’s interest income was 256.5 million euros, or 57.86% of the total income. When viewed over one year, interest income increased by 42.4 million euros.

“The increase in interest income was primarily driven by a rise in lending activity among banks, with 2024 being a record-setting year for newly approved loans. Additional income growth was influenced by short-term bank placements in foreign markets and securities investments,” Remiković explained.

As per preliminary data, total income from fees and commissions was 160.6 million euros, equivalent to 32.09% of the total bank income, while the comparable figure for the previous year was 147.4 million euros, accounting for 33.24% of total income.

“Fee and commission income mainly comes from three areas: payment transaction income amounting to 68.6 million euros, card and ATM operation income at 56.3 million euros, and account management income at 11.3 million euros. Their relative shares remained stable during the annual comparative period, with payment transaction income at 61.7 million euros, card and ATM operations at 51.7 million euros, and account management at 11.1 million euros,” Remiković stated.

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