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 | ||||||
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