The aggregate net profit of commercial banks in Bulgaria remained under pressure in the third quarter of the year, decreasing by 7.4% y/y to BGN 466.4mn (EUR 238.5mn), central bank data showed. In September alone, the banking sector earned a net profit of BGN 34mn, up 16.3% from a year earlier.
The declining profit of banks was due to net interest income, which fell 4.5% y/y to BGN 1.87bn in Jan-Sep, following a 4.7% y/y drop in the first eight months of the year. The annual growth of net fees and commissions also slowed to 6.2% y/y (to BGN 607.2mn) in Jan-Sep from 6.8% y/y in Jan-Aug.
The banking sector's administration costs rose 1.5% y/y to BGN 1.28bn and its loan loss provisions climbed 38.3% y/y to BGN 11.5mn. On the other hand, the loan impairment costs fell 9.2% y/y to BGN 749.5mn.
| Banking sector income statement | 2008 | 2009 | 2010 | 2011 | 2012 | Jan-Sep'13 |
| Net profit | ||||||
| BGN mn | 1,387 | 780 | 617 | 586 | 567 | 466 |
| y/y, % | 21.3 | 56.6 | -21.0 | -4.9 | -3.3 | -7.4 |
| Net interest income | ||||||
| BGN mn | 2,788 | 2,847 | 2,917 | 2,869 | 2,625 | 1,876 |
| y/y, % | 28.4 | 102.7 | 2.5 | -1.7 | -8.5 | -4.5 |
| Net fee&commission | ||||||
| BGN mn | 783 | 735 | 760 | 786 | 779 | 607 |
| y/y, % | 16.3 | 106.3 | 3.4 | 3.5 | -0.9 | 6.2 |
| Impairment | ||||||
| BGN mn | 330 | 1,040 | 1,317 | 1,290 | 1,209 | 750 |
| y/y, % | -4.1 | 158.5 | 26.6 | -2.0 | -6.3 | -9.2 |
| 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