North Macedonia's Komercijalna Banka expects profit drop amid COVID-19 pandemic

North Macedonia-based Komercijalna Banka AD Skopje estimates its gross profit before tax will amount to 1.97 billion Macedonian denars in 2021, down from 2.07 billion denars reported for 2020.

The lender also said in its 2021 financial plan that it expects its net interest income to increase roughly 5.3% year over year to 2.51 billion denars, with planned moderate growth of loans and deposits and lowered deposit interest rates.

Komercijalna Banka also plans to increase its gross impairment provision of claims by approximately 5.4% in 2021 amid the ongoing coronavirus crisis.

The bank noted that it will focus, among other things, on minimizing the negative effects of the health crisis on its loan portfolio, while preserving its capital value and maximizing profits by undertaking acceptable risks.

READ MORE: Sign up for our weekly coronavirus newsletter here, and read our latest coverage on the crisis here.

As of Feb. 1, US$1 was equivalent to 50.99 Macedonian denars.