Page 113 - BKT Annual Report 2024 EN

Notes to the Consolidated Financial Statements for the year ended 31 December 2024 Notes to the Consolidated Financial Statements for the year ended 31 December 2024
(amounts in USD, unless otherwise stated) (amounts in USD, unless otherwise stated)

7. CASH AND BALANCES WITH CENTRAL BANK
2024 2023
Geographical Segments Cash and balances with Central Bank as of 31 December 2024 and 31 December 2023 are detailed as follows:
Albania Kosovo Consolidated Albania Kosovo Consolidated
31 December 2024 31 December 2023
Interest
Cash on hand 134,749,481 99,242,154
Interest income 228,448,059 62,210,323 290,658,382 192,337,893 50,769,710 243,107,603 Deposits with the Central Bank of Kosovo 121,519,861 117,375,213
Bank of Albania
- Intragroup transactions 521,389 17,641 - 669,460 5,634 -
Current account 21,216,117 74,471,905
Interest expense (53,015,500) (15,125,897) (68,141,397) (38,047,207) (12,075,727) (50,122,934) Statutory reserve 400,110,116 385,655,374
Accrued interest 74,822 60,557
- Intragroup transactions (17,641) (521,389) - (5,634) (669,460) -
421,401,055 460,187,836
Net interest margin 175,432,559 47,084,426 222,516,985 154,290,686 38,693,983 192,984,669 677,670,397 676,805,203
In accordance with the Bank of Albania’s requirement relating to the deposit reserve, the Bank should maintain a minimum requirement
based on regulation no.29 “On the minimum required reserve maintained by banks with the Bank of Albania” in Albania as a statutory
Non-interest income, net
reserve account, which during the month can be decreased to 70% of this level, provided that the monthly average is maintained.
Fees and commissions, net 28,101,808 10,637,704 38,739,512 24,043,064 9,732,200 33,775,264
Balances with CBK include the minimum required statutory reserve of 10% of customer deposits in Kosova.
Foreign exchange revaluation 554,358 (156,868) 397,490 (14,407,428) 231,565 (14,175,863)
gain, net
Cash and cash equivalents as at 31 December 2024 and 31 December 2023 are presented as follows:
Foreign exchange trading 7,487,948 1,251,948 8,739,896 4,947,617 347,909 5,295,526
activities income, net 31 December 2024 31 December 2023
Cash and balances with Central Bank 677,670,397 676,805,203
Securities trading gain, net 4,022,023 881,764 4,903,787 (748,644) 782,734 34,090
Statutory reserve in Albania (400,110,116) (385,655,374)
Other (expense) / income, net (2,274,485) 289,147 (1,985,338) 1,015,620 78,774 1,094,394 Statutory reserve in Kosovo (79,683,572) (68,900,709)
Total non-interest income, 37,891,652 12,903,695 50,795,347 14,850,229 11,173,182 26,023,411 Current accounts with banks 85,309,813 125,812,475
net
Demand deposits with banks 30,079,690 30,160,022
Placements with maturities of 3 months or less 177,381,598 144,122,668
Operating expenses 490,647,810 522,344,285

Personnel expenses (35,031,602) (11,156,499) (46,188,101) (28,849,022) (8,667,569) (37,516,591) 8. PLACEMENTS AND BALANCES WITH BANKS

Administrative expenses (51,330,577) (11,602,594) (62,933,171) (42,581,908) (8,905,869) (51,487,777)
Placements and balances with banks as of 31 December 2024 and 31 December 2023 consisted as follows:
Depreciation and amortization (12,550,631) (1,981,340) (14,531,971) (9,722,737) (1,595,418) (11,318,155) 31 December 2024 31 December 2023
Placements 182,562,192 147,210,028
Total operating expenses (98,912,810) (24,740,433) (123,653,243) (81,153,667) (19,168,856) (100,322,523)
Cash collateral held by financial institutions 39,692,182 39,030,633
Current accounts 85,309,813 125,812,475
Demand deposits 30,079,784 30,160,059
Impairment of loans (1,852,387) (1,546,130) (3,398,517) 6,046,670 (676,689) 5,369,981
Accrued interest 148,728 263,200
Impairment of other financial (2,165,706) (1,905,178) (4,070,884) (15,461,484) (2,943,759) (18,405,243) Impairment (15,598) (14,075)
instruments
337,777,101 342,462,320

Placements are held with resident and non-resident banks, the vast majority of which is from Organisation for Economic Cooperation and
Profit before taxes 110,393,308 31,796,380 142,189,688 78,572,434 27,077,861 105,650,295
Development (“OECD”) countries and have contractual maturities up to 1 year. Current accounts represent balances with correspondent
Income tax (17,603,096) (2,904,317) (20,507,413) (12,081,939) (2,705,826) (14,787,765) banks in the OECD countries.
Cash collateral represents mostly collateral held by financial institutions in relation to letters of credit issued to the Bank’s clients and
Net profit for the year 92,790,212 28,892,063 121,682,275 66,490,495 24,372,035 90,862,530
cash deposits that secure risks in relation to the credit cards activity of the Bank.

ANNUAL REPORT 2024 58