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 |
Related Articles
Eurozone manufacturing growth hits four-year high in April but Middle East war drives record price surge
Eurozone manufacturing activity expanded at the fastest pace in nearly four years in April as factories rushed to build safety stocks ahead of expected price rises and supply shortages linked to the ... more
Bulgargaz files claim against Gazprom over lost gas supply
Gazprom faces another compensation claim for lost gas supply from a former European customer – this time Bulgaria’s state gas company Bulgargaz. Bulgaria was one of a number of European ... more
Bulgaria's BACB to acquire 99.94% of Tokuda Bank
The Bulgarian-American Credit Bank said on April 16 it has agreed to acquire 99.94% of local Tokuda Bank from Japan-based Tokushukai Incorporated. The two banks are among the smallest in Bulgaria ... more