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            

Related Articles

Bulgarian capital mulls car ban to tackle air pollution

The Sofia city authorities have announced plans for wide-reaching measures to curb high levels of air pollution in the capital.  Bulgaria has the highest levels of PM10 concentrations in ... more

EC to sue Bulgaria, Romania for failing to adopt copyright legislation

The European Commission said that will refer Bulgaria and Romania, along with Luxembourg and Spain, to the Court of Justice of the EU as they have failed to notify ... more

Bulgaria, Macedonia plan feasibility study for link to reduce dependence on Russian gas

Bulgarian state-owned gas transmission system operator Bulgartransgaz and Macedonian energy company MER Skopje have signed an agreement on the start of a ... more

Dismiss