banks

Serbian Banks Maintain Strong Profitability as Net Interest Margins Continue to Narrow

Serbian banks generated around €863 million in pre-tax profit during the first seven months of 2026, while profitability indicators continued to ease from recent peaks as the impact of elevated interest rates diminished. Profitability Indicators Moderate Banking-sector return on equity stood at 18.2% in July 2026, compared with 20.1% in 2025 and 20.3% in 2024. Return on assets also declined to 2.4%, from 2.8% in each of the previous two years. The change has been accompanied by a decline in…