Eurobank EFG Bulgaria net profit plunges 80% y/y in Q1.

By bne IntelliNews April 29, 2010
The net profit of the country's fifth-largest lender Eurobank EFG Bulgaria plunged by 80% to BGN 2mn (EUR 1.02mn) in Q1, according to the quarterly report posted on the website of the local stock exchange. We remind that the net profit of the lender fell by 79% y/y to BGN 20.4mn last year and 83.8% y/y to BGN 3.16mn in Q4 alone. The worsening of the lender's financials is due to an increase in the devaluation expenditures by more than 7 times to BGN 104.6mn last year and 143% y/y to BGN 30.7mn in Q4 alone. In Q1, expenditures on devaluation more than doubled as compared to a year earlier and reached BGN 40.4mn. The net interest income rose by 33.9% to BGN 69mn in Q1 as interest revenues increased by 6.8% y/y and interest expenditures fell by 11.6% y/y. The asset value of the bank rose 0.7% during the quarter to BGN 6.06bn as of end-March. Dutch EFG New Europe Holding and Greek EFG Eurobank Ergasias control almost 90% of the local lender. In February, the international rating agency Fitch lowered the long-term and short-terms issuer default ratings of Eurobank EFG Bulgaria by one notch to BBB- from BBB and to F2 from F3 on parent's downgrade.

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