The aggregate net profit of commercial banks in Bulgaria remained under pressure in the third quarter of the year, decreasing by 7.4% y/y to BGN 466.4mn (EUR 238.5mn), central bank data showed. In September alone, the banking sector earned a net profit of BGN 34mn, up 16.3% from a year earlier.
The declining profit of banks was due to net interest income, which fell 4.5% y/y to BGN 1.87bn in Jan-Sep, following a 4.7% y/y drop in the first eight months of the year. The annual growth of net fees and commissions also slowed to 6.2% y/y (to BGN 607.2mn) in Jan-Sep from 6.8% y/y in Jan-Aug.
The banking sector's administration costs rose 1.5% y/y to BGN 1.28bn and its loan loss provisions climbed 38.3% y/y to BGN 11.5mn. On the other hand, the loan impairment costs fell 9.2% y/y to BGN 749.5mn.
|Banking sector income statement||2008||2009||2010||2011||2012||Jan-Sep'13|
|Net interest income|
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