Net profit of Bulgarian banks up 4% in Jan-Apr 2013

By bne IntelliNews June 3, 2013

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.
 

  2008 2009 2010 2011 2012 Jan-Apr 2013
Net profit             
BGN mn 1,387 780 617 586 567 211
y/y, % 21.3 56.6 -21.0 -4.9 -3.3 4.0
Net interest income          
BGN mn 2,788 2,847 2,917 2,869 2,625 814
y/y, % 28.4 102.7 2.5 -1.7 -8.5 -7.7
Net fee&commission          
BGN mn 783 735 760 786 779 266
y/y, % 16.3 106.3 3.4 3.5 -0.9 10.7
Impairment            
BGN mn 330 1,040 1,317 1,290 1,209 326
y/y, % -4.1 158.5 26.6 -2.0 -6.3 -7.2
Source: BNB            

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