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            

Related Articles

Poultry company Gradus holds Bulgaria's biggest IPO in 10 years

Bulgaria’s biggest poultry company Gradus sold 43,961,878 shares during the first day of listing of its shares on Bulgarian Stock Exchange in the biggest IPO for the past 10 years, bourse data ... more

Bulgaria’s FIBank denies links to Yulen, risk of collapse

Bulgaria’s FIBank on June 15 denied claims by opposition Democratic Bulgaria and investigative news outlet Bivol.bg about links between one of its shareholders – Tseko Minev – and the ... more

Bulgarian prosecution accuses medical audit body of covering up deaths

Bulgaria’s Supreme Cassation Prosecution accused the state medical audit body, EAMO, of covering up several cases of patients who died in hospital ... more

Dismiss