Net profit of Bulgarian banks up 2.7% y/y in H1 2012.

By bne IntelliNews August 1, 2012
The aggregate net profit of the banking sector rose by 2.7% y/y to BGN 323.4mn (EUR 165.4mn) in H1 2012 on the back of a 70% y/y surge in net profit in June alone, central bank data showed. The strong growth during the month was driven mainly by a 7.4% drop in administrative expenses and 80% y/y lower provisions for impairment. The annual drop in net interest income however accelerated further to 13.8% y/y in June in continuation of the downward trend that started exactly one year ago as a result of contracted lending activity and high levels of deposit rates in the country. The cumulative net interest income also remained below its year-ago levels in H1 (down 9.8% y/y) as interest revenue dropped by 3.6% y/y and interest expense rose by 5% y/y. Net fees and commissions income also dropped by 1.4% y/y in Jan-Jun. The cumulative decrease in impairment expenses rose to 13.2% y/y in H1, compared to 9.5% y/y in Jan-May.
2008 2009 2010 2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12
Net profit
BGN mn 1,387 780 617 586 55 63 58 27 61 60
% 21.3 56.6 -21.0 -4.9 19.2 51.9 -17.0 -52.2 -7.9 70.7
Net interest income
BGN mn 2,788 2,847 2,917 2,869 226 215 224 217 217 216
% 28.4 102.7 2.5 -1.7 -6.9 -8.0 -8.6 -9.5 -11.8 -13.8
Net fee&commission
BGN mn 783 735 760 786 58 56 65 61 66 66
% 16.3 106.3 3.4 3.5 -0.4 -2.0 -2.4 -2.4 3.3 -4.3
Impairment
BGN mn 330 1,040 1,317 1,290 98 58 89 106 102 87
% -4.1 158.5 26.6 -2.0 -11.6 -43.4 4.6 0.7 4.7 -28.5
Source: BNB

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