Raiffeisen says Bulgarias banking sector remains moderately profitable in 2011.

By bne IntelliNews June 7, 2012
The Bulgarian banking sector remained moderately profitable last year despite the ongoing rebalancing, Raiffeisen Research said in its latest CEE Banking Sector report. The lending activity remained low due to the tight lending policies and the high unemployment. Total loans increased by 4% driven mainly by the corporate segment on higher credit demand in trade, processing industries and professional services. The deposit base expanded by 12% on the year in 2011 supported by increased retail deposits. The banking sectors capital adequacy ratio stood at 17.5% as of end-2011, well above the regulatory minimum of 12%. Given its solid liquidity and capital position, the Bulgarian banking system is well placed to support lending in a friendlier domestic and external economic environment, which distinguishes the countrys banking sector from some of its peers in the SEE region, Raiffeisen said. The sectors profit dropped for the third straight year in 2011 due to higher provisions for classified loans and lower volume of new lending.
Notice: Undefined index: social in /var/www/html/application/views/scripts/index/article.phtml on line 259

Related Articles

EC urges Bulgaria to comply with EU rules on free movement of capital.

The EC has sent a reasoned opinion to Bulgaria over failure to comply with EU rules on the free movement of capital, the EC said on its website. The privatisation act in Bulgaria introduces ... more

Govt seeks delay of antitrust rules violation procedure against Bulgaria.

Bulgaria will be seeking an extension of the court procedure filed by the EC against the country over irregularities found in the assignment of digital broadcast spectrum, transport minister ... more

Bulgarians hold EUR 100mn in deposits in Cyprus.

Bulgarian individuals and companies hold EUR 100mn in Cypriot banks according to ECB data, BTA reported quoting Reuters. The largest EU depositors in the crisis-hit country are Greece with EUR ... more