site.btaMay Banking System Profit Amounts to BGN 1.5 Bln

The profit of the banking system in Bulgaria was BGN 1.5 billion as of end-May, the Bulgarian National Bank said on Friday. This is a 12.4% increase compared to the profit for the first five months of 2023.

Compared to the same period of 2023, the net interest income increased by BGN 414 million (22.2%) to BGN 2.3 billion as of May 31, 2024, and the net fee and commission income was up by BGN 40 million (6.7%) to BGN 641 million.

As of May 31, 2024, the assets of the banking system amounted to BGN 175.4 billion, up by BGN 258 million (0.1%) from the end of April. 

The liquidity coverage ratio as of May 31, 2024, was 261.4% (251.9% as of April 30). The liquidity buffer was BGN 48.7 billion, and the net liquidity outflows were BGN 18.6 billion (BGN 49.6 billion and BGN 19.7 billion at the end of April, respectively). 

The gross loan portfolio of the banking system grew by BGN 1.1 billion (1.1%) to BGN 102.6 billion. Growth was registered in the loans to households (by BGN 716 million, 1.7%), to non-financial corporations (by BGN 337 million, 0.7 %), and to the general government sector (by BGN 71 million, 8.5%). Loans to other financial corporations decreased by BGN 45 million (0.5%). 

Compared to the end of April, the deposits in the banking system increased by BGN 647 million (0.4%), reaching BGN 149.6 billion at the end of May. Growth was reported in the deposits of households (by BGN 536 million, 0.6%), of non-financial corporations (by BGN 154 million, 0.3%) and of the general government sector (by BGN 44 million, 1.1%). The deposits of credit institutions decreased (by BGN 47 million, 0.5%), as did the deposits of other financial corporations (by BGN 40 million, 1.1%). 

The total equity in the balance sheet of the banking system at the end of May amounted to BGN 20.8 billion, up by BGN 318 million (1.6%) from the end of April.