August 30, 2017 / 9:57 AM / a year ago

Slovenian banks reduce bad loans in June

LJUBLJANA, Aug 30 (Reuters) - Slovenian banks cut bad loans, whose repayment has been delayed by 90 days or more, to 3.1 billion euros ($3.70 billion) in June, or 7.5 percent of all loans, down from 7.7 percent a month before, the Bank of Slovenia said on Wednesday.

It also said banks had made a joint net profit of 233 million euros in the first six months of the year, down from 249 million in the same period of 2016, mainly due to lower interest rate income.

Bad loans have been falling gradually since 2013, when they represented about a fifth of all loans. In that year the government narrowly avoided an international bailout for its banking sector.

“The number of loans is rising, particularly to small and medium-sized companies. Long-term loans to companies increased by 7.6 percent year-on-year in June, while short-term loans are falling,” the bank said.

The total number of loans was up by 1.5 percent year-on-year, with loans to the non-banking sector up by 4.9 percent.

Some of the biggest banks are still state-owned and the government controls about 45 percent of the banking sector.

The rest are owned by foreign banks and investors, including U.S. investment firm Apollo Global Management, France’s bank Societe Generale, Italy’s Unicredit and Intesa Sanpaolo, Russia’s Sberbank, Austria’s Sparkasse and Addiko Bank. ($1 = 0.8369 euros) (Reporting by Marja Novak, editing by Louise Heavens)

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