Page 34 - Annual Report 2023

34 BANKA KOMBËTARE TREGTARE

CORPORATE

BANKING

During 2023 the Albanian Economy performed better redesigning the branch processes to engage in more
than expected, emerging as one of the stronger complex transactions and build stronger customer
performers in the region with an average GDP relationships. Additionally, we rethought back-office
growth of 3.6%. The economic growth momentum processes to develop products and services that
has remained undiminished by the challenging reduce branch operational work so to replace it with
international environment and tighter monetary more valuable tasks, build engagement and foster
conditions, both in the international and domestic better experiences for our customers.
markets. The rising role of tourism has enhanced On the other hand, through different loan packages
confidence in our country’s prospects, reflected in and products, diversification, and risk mitigation,
the continuous appreciation of lek, whilst the inflation we continued prudently to finance investment
rate though above the target of Bank of Albania, projects, green projects, renewable energy and
managed to remain lower compared to the region, large infrastructural ventures which create and add
primarily due to energy production and limited direct value to the communities and overall country’s social
financial and trade relations to Russia and Ukraine. and economic development, providing personalized
Despite operating in an environment where the service and generating unique experiences to our
financing conditions strengthened, specifically corporate customers. Close monitoring of the
considering the spikes of the interest rates as a customers’ performance has continued to be on
reflection of tightening monetary policy, the corporate focus, which is reflected in a better loan portfolio
segment achieved significant results with loans quality and an NPL which for corporate segment
outstanding volume reaching USD 487.2 million remained below system average.
by end of 2023, which corresponds to 17.2 per Additionally, through introduction of innovative
cent increase to the previous year portfolio. The banking services and IT solutions, during 2023 as
new lending volumes count for 29% of total loans well we maintained and consolidated further the
portfolio. long-term partnership with the Public Institutions,
The continuous investment in technology and Central and Local government by playing a vital
innovation has been fundamental to strengthening the role in supporting of important infrastructural digital
reach of our business customers and enhancing their projects.
routine transactions and services with alternative digital During 2023 we continued to sustain corporate
channels. Specific focus was given to International customers in all matters related to Trade Finance
Money transfers through online channels through a Products and managed to preserve our market share
variety of correspondents, ensuring their completion in Trade Finance during 2023, by closely following,
within the same day with very competitive price. supporting, and advising our customers in better
Nevertheless, though the trend towards digitalization understanding and structuring their needs for trade
is remarkable and the usage of alternative channels finance products in order to mitigate their risk in
and mobile banking has deepened significantly, we international trade.
also focused on improving the service channels,