Bulgaria's banking sector net profit down 7.4% y/y to EUR 238.5mn in Jan-Sep 2013

By bne IntelliNews October 31, 2013

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 profit             
BGN mn 1,387 780 617 586 567 466
y/y, % 21.3 56.6 -21.0 -4.9 -3.3 -7.4
Net interest income            
BGN mn 2,788 2,847 2,917 2,869 2,625 1,876
y/y, % 28.4 102.7 2.5 -1.7 -8.5 -4.5
Net fee&commission            
BGN mn 783 735 760 786 779 607
y/y, % 16.3 106.3 3.4 3.5 -0.9 6.2
Impairment            
BGN mn 330 1,040 1,317 1,290 1,209 750
y/y, % -4.1 158.5 26.6 -2.0 -6.3 -9.2
Source: BNB            
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