site.btaBanks' Profit for January-July 2018 Amounts to BGN 951 million

113 ECONOMY - BANKS - PERFORMANCE

Banks' Profit for
January-July 2018 Amounts to
BGN 951 million


Sofia, August 31 (BTA) - In July 2018 the assets of the banking system increased on a monthly basis by 2.1 per cent (BGN 2.2 billion) to BGN 102.3 billion, the National Bank of Bulgaria (BNB, the central bank), said in a press release Friday.

The item cash, cash balances at central banks and other demand deposits increased and its share in the total assets at the end of the month was 19.8 per cent. Other demand deposits and cash on hand increased. The balance sheet (net) amount of loans and advances registered a monthly growth, thus its share in the assets reached 62.2 per cent. The securities portfolios marked a slight decrease and their share was 13.1 per cent. Gross loans and advances increased by 2.6 per cent (BGN 2.2 billion) compared to end-June.

There was an increase in the claims on credit institutions and in the loan portfolio, while the exposures to central banks registered a decrease.

The gross loan portfolio (excluding loans and advances to sectors central banks and credit institutions) grew during the month by 1.4 per cent (BGN 826 million) to BGN 59.7 billion.

There was an increase in the loans to non-financial corporations (by BGN 390 million, 1.1 per cent), to other financial corporations (by BGN 257 million, 9.5 per cent), to households (by BGN 174 million, 0.8 per cent) and to the general governments sector (by BGN 6 million, 0.9 per cent).

The deposits in the banking system grew during the month by 2.1 per cent (BGN 1.8 billion) and as of end-July amounted to BGN 88.0 billion in total.

There was an increase in the deposits of non-financial corporations (by BGN 1.4 billion, 5.9 per cent), of households (by BGN 410 million, 0.8 per cent) and of credit institutions (by BGN 284 million, 5.3 per cent).

A decrease was registered in the deposits of other financial corporations (by BGN 254 million, 8.1 per cent) and of the general governments sector (by BGN 58 million, 2.4 per cent).

The total equity in the banking systemТs balance sheet amounted to BGN 12.2 billion at the end of July 2018, with a monthly increase of BGN 174 million (1.4 per cent).

The profit for January-July 2018 amounted to BGN 951 million (against BGN 790 million for the same period of last year).

For this period, the impairment costs on financial assets not measured at fair value through profit or loss amounted to BGN 270 million (against BGN 287 million a year earlier).

The liquidity buffer and net liquidity outflows, calculated according to Commission Delegated Regulation (ЕU) 2015/61 (to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council) as of end-July were BGN 24.7 billion and BGN 7.6 billion, respectively. The ratio between the two values - the liquidity coverage ratio (LCR) - was 325.9 per cent.

As of 30 June 2018 the Common Equity Tier 1 capital, the Tier 1 capital, and the total capital adequacy ratios were 19.31 per cent, 19.74 per cent and 20.82 per cent, respectively (compared to 19.34 per cent, 19.79 per cent and 20.91 per cent as of end-March 2018). LY/ZH//