The profitability indicators of the Albanian banking sector are declining for the second consecutive year. According to unaudited statistics reported by the Albanian Association of Banks, based on International Financial Reporting Standards (IFRS), for the first six months of 2026, the banking sector reported a return on equity (averaged on an annual basis) of 14.03%, down from 16.69% a year earlier.

Return on assets also shrank to 1.39%, down from 1.66% a year earlier. Also, the sector's profit in absolute value decreased to Lek 16.2 billion, 8.5% less compared to the 6-month period of 2025.

The decline in the sector's profitability has come in parallel with the decrease in profit and the further increase in share capital. The decrease in interest rates and high pressures on the expense side are estimated to be determining lower profits for commercial banks.

Meanwhile, the significant increase in capital requirements by the Bank of Albania, after 2019, has brought a significant increase in the sector's share and regulatory capital.

The bank with the highest return on capital for the 6 months of 2026 was Raiffeisen Bank, with 21.75%. However, Raiffeisen's return decreased significantly from the 26.15% level of the previous year.

American Investment Bank (ABI Bank) follows, at 19.15%, but this too is down sharply from the 33.93% return it reported in the middle of last year.

The largest bank in the country, Banka Kombëtare Tregtare (BKT), ranks third, with a return on equity of 15.85%. BKT is among the few banks that have slightly improved their return, compared to the 15.03% level a year ago.

Next comes a group of banks that report a return on equity indicator slightly above the banking sector average.

OTP Albania achieved a return on equity of 14.74% (from 17.72% a year ago), Fibank, at 14.65% (from 24.35% a year ago), and Tirana Bank, at 14.03% (from 16.11% a year ago).

Other banks have recorded returns below the banking sector average for the period. Union Bank reports a return on equity of 13.79% (from 14.6% a year ago), Intesa Sanpaolo Bank Albania has achieved a return of 9.94% (from 13.45% a year ago), and Credins Bank a return of 6.92% (from 6.97% a year ago).

ProCredit Bank Albania and the United Bank of Albania have closed the 6-month period with losses. ProCredit reported a return of -0.19% (from 1.5% a year ago) and the United Bank of Albania -31.7% (from -3.81% a year ago).