The aggregate net profit of commercial banks in Bulgaria fell 3.5% y/y to BGN 379mn (EUR 194mn) in Jan-Jul 2013 on lower net interest income and increasing loan loss provisions, data published by the central bank showed. In July 2013 alone, the banking sector earned a net profit of BGN 61.4mn as compared to BGN 69.5mn a year earlier.
The sector's main profit driver - the net interest income - continued to decline, albeit at a slower pace. It decreased 5.1% y/y to BGN 1.4bn in Jan-Jul after shrinking by 5.9% the month before. On the other hand, the annual growth of non-interest income, i.e. net fees and commissions, remained rather stable at 7.8%, totalling BGN 474mn for the first seven months of 2013. Bulgaria's banking sector loan loss provisions climbed 35.6% y/y to BGN 9.8mn in Jan-Jul.
Banking sector income statement | 2008 | 2009 | 2010 | 2011 | 2012 | Jan-Jul'13 |
Net profit | ||||||
BGN mn | 1,387 | 780 | 617 | 586 | 567 | 379 |
y/y, % | 21.3 | 56.6 | -21 | -4.9 | -3.3 | -3.5 |
Net interest income | ||||||
BGN mn | 2,788 | 2,847 | 2,917 | 2,869 | 2,625 | 1,454 |
y/y, % | 28.4 | 103 | 2.5 | -1.7 | -8.5 | -5.1 |
Net fee&commission | ||||||
BGN mn | 783 | 735 | 760 | 786 | 779 | 474 |
y/y, % | 16.3 | 106 | 3.4 | 3.5 | -0.9 | 7.8 |
Impairment | ||||||
BGN mn | 330 | 1,040 | 1,317 | 1,290 | 1,209 | 579 |
y/y, % | -4.1 | 159 | 26.6 | -2 | -6.3 | -8 |
Source: BNB |
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