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 interest income|
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