Banks in Slovenia made a profit of just €69.6m before taxes in the Q1 2020, which is just half of what it made for the same period in 2019. The decline in profits is a consequence of less favorable trends in terms of gross income and on the consumption side, where there are higher costs. The average quality of the loan portfolio in March did not yet impact bank results, but a slowing economy thanks to the restrictions to slow the spread of the pandemic are certain to make themselves felt, according to the Bank of Slovenia. However, in the first three months of this year, banks have already created €12.5m in new reductions and provisions.
