Share of bad loans in Bulgaria's banking sector ticks up to 17.2% at end-September 2013

By bne IntelliNews November 1, 2013

The share of non-performing loans in Bulgaria's banking sector increased to 17.2% of total gross loans as of end-September 2013 from 17.1% at end-March, central bank data showed. The non-performing loan (NPL) ratio remained unchanged from the same period last year.

Non-performing loans, representing bank exposures more than 90 days past due, rose 0.8% y/y to BGN 9.94bn (EUR 5bn) at end-September, following a 2.8% yearly growth at end-March.

Companies’ exposures accounted for 75% of all bad loans, while the households’ share was at 24.6% (16% for mortgages and 8.6% for consumer loans).

The NPLs ratio has been growing steadily since the third quarter of 2009 when it stood at only 3.55%. Despite its decreasing annual rate of growth, it is currently 0.8pps above its end-2012 level and over 2pps above its end-2011 level.

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