Bulgaria's banking sector aggregate net profit rose 4% y/y to BGN 210mn (EUR 107mn) in Jan-Apr 2013 after declining by 4.8% y/y at end-March, central bank data showed. The improvement in banks' profit came on the back of net fee and commissions income, which went up by 10.7% y/y, in combination with declining impairment charges (down 7.2% y/y) and provisions (down 78% y/y).
Net interest income continued to fall, although at a slightly slower pace - 7.7% y/y in Jan-Apr, compared to 8.1% y/y the month before. This was largely expected as over the same period the gross credit stock in Bulgaria (loans comprise 78% of the sector's total assets) contracted 1.4% y/y, following months of weak growth.
In April alone, the banking sector's net profit increased 61% y/y, mainly reflecting growth in net fee and commissions income.
|Net interest income|
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