site.btaBank Profits Reach Lv 526 Mln By end-May

Bank Profits Reach Lv 526 Mln By end-May

Sofia, June 30 (BTA) - In May, banks' liquid assets increased by 1.6 per cent to 30.5 billion leva. The liquidity ratio calculated under a Bulgarian National Bank (BNB) rules was high, at 37.87 per cent, the central bank said on Friday. Compared to end-April, the total assets of the banking system increased by 0.4 per cent to 93.4 billion leva.

The gross loan portfolio (excluding loans and advances to sectors "Central Banks and Credit Institutions") amounted to 55.1 billion leva as of end-May and registered a 0.1 per cent decrease in the reporting month, which was influenced by sales of loans. A drop was reported in the loans to nonfinancial corporations (by 263 million leva) and to the general governments sector (by 38 million leva). There was an increase in loans to households (by 193 million leva) and to other financial corporations (by 36 million leva).

Deposits in the banking system increased by 0.6 per cent, to 79.7 billion leva. An increase was registered in the deposits of nonfinancial corporations (by 478 million leva) and those of credit institutions (by 66 million leva), and a decrease in those of the general governments sector (by 44 million leva), other financial institutions (by 31 million leva) and households (by 27 million leva).

As of 31 May 2017 the profit accumulated in the banking system amounted to 526 million leva (compared to 502 million leva in the same period of 2016). The impairment costs on loans and receivables for the first five months of 2017 were 207 million leva (compared to 276 million leva a year earlier).

The total equity in the balance sheet of the banking system at the end of May 2017 was 11.9 billion leva. It decreased by 0.5 per cent in the month, mainly owing to dividend distribution.