site.btaBanking System Posts Little Over Lv 1 Bln in Profit in January-August

Banking System Posts Little Over Lv 1 Bln in Profit in January-August

Sofia, October 1 (BTA) -  In August the deposits, profit and balance sheet capital of the banking system continued to grow, the Bulgarian National bank reported. The  liquid assets ratio remained high at 37.58 per cent.

At the end of the month the amount of liquid assets reached 29 billion leva with cash and cash balances at the BNB (48.7 per cent ) continuing  to dominate their structure.  As of August 31 the banking system's profit stood at 1,040 million leva, or 327 million leva more than the one  realised for the eight months of the previous year. The impairment costs on loans and receivables  accumulated from the beginning of 2016 amounted to 426 million leva (against 535 million leva for the same period of last year).

Compared to the end of July, the banking system's assets increased by 0.8 per cent, to 90.1 billion leva. Cash and cash balances at central banks and other demand deposits  grew by 3.5 per cent  (595 million leva), their share  in total assets rising to 19.5 per cent.

The total balance sheet amount of loans and advances stayed almost  unchanged, while its share in the assets decreased  to 61.4 per cent.

In the reported month the securities port folios  increased by 1.2 per cent  (147 million leva) and their share in the total amount of assets went up to 14.2 per cent. The  market share of the five largest credit institution s slightly declined to 57.6 per cent.

The banking sector's  gross loan portfolio (excluding loans and advances to sectors  central banks and  credit institutions grew by 0.1 per cent  (60 million leva). An increase in lend ing to households was observed (by  91 million leva). There was also an increase in loan s to other financial corporations (by 19 million leva), and  a decrease in loans to non-financial corporations (by 45 million leva) and to the  general governments sector  (by 4 million leva).

 Deposits in the banking system increased during the month b y 1.1 per cent  to 76.5 billion leva. Resources  attracted from non-financial corporations increased most substantially - by 759 million leva (3.8 per cent ). An increase was also observed in household deposits (75 million leva, 0.2 per cent), in resources of credit institutions (by 62 million leva, 1.4 per cent ), and of other financial c orporations (by 9 million, 0.2 per cent ).

A decrease was reported  in  general governments sector deposits (by 62 million leva, 3.5 per cent ).  The balance sheet item  total equity  at the end of August was 12.2 billion leva, which for the month  increased by 181 million leva (1.5 per cent ) on account of the growth in profit and accumulated other comprehensive income.