Bulgaria's banking sector net profit down 3.5% y/y to EUR 194mn in Jan-Jul 2013

By bne IntelliNews September 3, 2013

The aggregate net profit of commercial banks in Bulgaria fell 3.5% y/y to BGN 379mn (EUR 194mn) in Jan-Jul 2013 on lower net interest income and increasing loan loss provisions, data published by the central bank showed. In July 2013 alone, the banking sector earned a net profit of BGN 61.4mn as compared to BGN 69.5mn a year earlier.

The sector's main profit driver - the net interest income - continued to decline, albeit at a slower pace. It decreased 5.1% y/y to BGN 1.4bn in Jan-Jul after shrinking by 5.9% the month before. On the other hand, the annual growth of non-interest income, i.e. net fees and commissions, remained rather stable at 7.8%, totalling BGN 474mn for the first seven months of 2013. Bulgaria's banking sector loan loss provisions climbed 35.6% y/y to BGN 9.8mn in Jan-Jul.

Banking sector income statement 2008 2009 2010 2011 2012 Jan-Jul'13
Net profit             
BGN mn 1,387 780 617 586 567 379
y/y, % 21.3 56.6 -21 -4.9 -3.3 -3.5
Net interest income            
BGN mn 2,788 2,847 2,917 2,869 2,625 1,454
y/y, % 28.4 103 2.5 -1.7 -8.5 -5.1
Net fee&commission            
BGN mn 783 735 760 786 779 474
y/y, % 16.3 106 3.4 3.5 -0.9 7.8
Impairment            
BGN mn 330 1,040 1,317 1,290 1,209 579
y/y, % -4.1 159 26.6 -2 -6.3 -8
Source: BNB            
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