site.btaBanking System's Profit Amounts to BGN 1.7 Bln by June 30 - Central Bank

The banking system's profit as of June 30 amounted to BGN 1.7 billion, BGN 672 million (66%) more than reported for the first half of 2022, the Bulgarian National Bank (BNB) said in an analysis of the state of Bulgaria's banking system by the end of June 2023. 

During the second quarter of 2023 the assets of the banking system grew by BGN 466 million (0.3%) and at the end of June reached BGN 161.1 billion. Loans and advances rose compared to end-March and their share in the structure of the total assets increased from 61.1% to 65.0%.

The liquidity coverage ratio was 225.6% at the end of June 2023 (238.2% at end-March). The liquidity buffer was BGN 46.9 billion, and the net liquidity outflows were BGN 20.8 billion (BGN 49.1 billion and BGN 20.6 billion, respectively, at the end of March).

Gross loans and advances increased on a quarterly basis by BGN 6.4 billion (6.3%) to BGN 108.0 billion. Claims on credit institutions increased by BGN 3.1 billion (23.8%) to BGN 16.3 billion.

The gross loan portfolio grew by BGN 3.3 billion (3.7%) to BGN 91.7 billion, with an increase in all sectors in its structure. Relative to end-March loans to households rose by BGN 1.4 billion (4.0%), loans to non-financial corporations – by BGN 1.2 billion (2.6%), loans to other financial corporations – by BGN 610 million (8.6%), and loans to the general governments sector – by BGN 111 million (12.0%).

During the second quarter of 2023 the deposits in the banking system grew by BGN 943 million (0.7%) and reached BGN 138.5 billion at the end of June. There was an increase in the deposits of households (by BGN 1.5 billion, 1.9%) and in those of credit institutions (by BGN 1.0 billion,11.2%). A decrease was registered in the deposits of non-financial corporations (by BGN 644 million, 1.5%), of other financial corporations (by BGN 526 million, 11.1%), and of the general governments sector (by BGN 348 million, 7.7%).

At the end of the second quarter the total equity in the balance sheet of the banking system amounted to BGN 18.3 billion, by BGN 893 million (5.1%) more compared to end-March. The increase was primarily due to the higher profit for the reporting period.