Robust demand for loans in retail and further penetration in the lucrative Balkan markets helped bring about the jump in profit.

The expansion in retail lending, the lower provisions and costs are the main drivers for the return to profitability.

The large increase in profitability was due to the bank's strong expansion in retail lending, especially in home loans, where National held on to its top rank.

The return to profit, plus lower contributions to the employees' pension fund thanks to a new law, will definitely help the government sell the bank.

But looser underwriting standards and the more widespread penetration of riskier mortgage products have raised questions about how these loans will fare in the event of a rise in interest rates or a softening in house prices,

But looser underwriting standards and the more widespread penetration of riskier mortgage products have raised questions about how these loans will fare in the event of a rise in interest rates or a softening in house prices.