BKT Chief Executive Officer and Board Member Seyhan Pencabligil has shared insights on the bank’s recent performance, expectations for the coming period, and views on the Albanian economy in an interview with Monitor Magazine.
Reflecting on 2024, Pencabligil said BKT achieved most of its targets. “We increased loans to the economy by 20% in Euro terms, while keeping a low NPL ratio. Return on equity was also very healthy at 20% in U.S. dollar terms, as our share capital is denominated in this currency. As a result, the capital adequacy ratio stood at 19% and we further reinforced our equity with the second MREL issuance.”
He noted that so far in 2025, BKT maintains momentum and leads in retail loans while increasing business loans rapidly. This year marks BKT’s centenary since its founding in 1925. The bank continues to focus on digitalization, efficiency, growth, and profitability.
Looking ahead, Pencabligil expects moderate but sustainable growth. He said interest rates may ease but could reduce margins. “We’ll place more emphasis on generating revenue from non-interest sources (fees, commissions and transaction) based income by generating new solutions to business and retail customers although it will be pressure on fees from transfers.”
Pencabligil added that regulatory changes such as countercyclical capital buffer implementation will influence capital planning for banks—especially those deemed systemically important—and will put compliance pressure on smaller banks. He anticipates ongoing demand for credit from sectors like SMEs, tourism, energy, and housing if sound lending standards are maintained. He also foresees faster digital transformation across banking services.
Discussing Albania’s economic outlook over the medium term, Pencabligil believes annual growth can be sustained at around 3–3.5%, supported by investment, tourism growth, and improved public finances. Over the longer term he sees challenges including productivity improvement, informality reduction, infrastructure upgrades and human capital development.
He identified key financing opportunities: “Energy and renewables, SMEs… Tourism and hospitality… Agriculture and agri-processing… Housing / construction…” He expects green finance as well as digital infrastructure investments to become more important as Albania aligns with European Union standards.
On recent measures by the Bank of Albania to tighten mortgage loan criteria introduced in July 2025, Pencabligil stated: “The July tightening is likely to dampen growth in some parts of the real-estate credit market—especially high LTV mortgages, speculative housing or loans to borrowers with irregular income.” He noted that BKT has already been vigilant in risk management so expects limited impact compared to other banks.
Regarding Ziraat Bank’s entry into Albania after being granted a license by the central bank—the first such license issued after years of consolidation—Pencabligil said: “We welcome wholeheartedly the return of Ziraat Bank to Albania… Their entry will bring healthy competition and significant know-how vis-vis agrobusiness…”
Asked about government priorities for sectoral development going forward he advised aligning policy incentives toward sectors where private investment can have reliable impact: “First of all infrastructure & connectivity: roads utilities broadband energy grids… Regulatory predictability: reducing bureaucracy improving contract enforcement strengthening jurisdiction… SME support: matching conduit financing credit guarantee schemes improving access… Education & human capital: vocational technical training aligning curricula…”
He concluded that stable macroeconomic conditions regulatory clarity and cooperation between government institutions would help deliver these priorities effectively.
