site.btaBanking System Profit Hits BGN 2.7 Bln End-September 2023

As of September 30, 2023, the profit of the banking system was BGN 2.7 billion, an increase of BGN 1.2 billion or 80.5% year-on-year, the Bulgarian National Bank reported here on Tuesday.

In the third quarter of 2023, the total assets of the banking system increased by BGN 4.0 billion (2.5%) and reached BGN 165.1 billion at the end of September.

As of end-September, loans and advances and debt securities accounted for 63.4% and 14.6% of the banking system's assets, respectively.

The liquidity coverage ratio at the end of September 2023 was 241.9% (225.6% at the end of June). The liquidity buffer was BGN 46.2 billion, and the net liquidity outflows were BGN 19.1 billion (BGN 46.9 billion and BGN 20.8 billion at the end of June, respectively).

During the quarter, gross loans and advances increased by BGN 102 million (0.1%) to BGN 108.1 billion. Claims on credit institutions decreased by BGN 2.8 billion (17.4%) to BGN 13.5 billion, and the gross loan portfolio grew by BGN 2.9 billion (3.2%) to BGN 94.6 billion, with growth reported across all institutional sectors in its structure. Loans to households increased during the quarter by BGN 1.5 billion (4.2%), those to non-financial corporations – by BGN 711 million (1.5%), to other financial corporations – by BGN 522 million (6.8%), and to the general governments sector – by BGN 160 million (15.6%).

In the third quarter of 2023, the deposits in the banking system increased by BGN 2.9 billion (2.1%) to reach BGN 141.3 billion at the end of September. Growth was registered in the deposits of non-financial corporations (by BGN 1.9 billion, 4.5%) and of households (by BGN 1.8 billion, 2.4%). There was a decrease in the deposits of other financial corporations (by BGN 452 million, 10.7%), of the general governments sector (by BGN 322 million, 7.7%) and of credit institutions (by BGN 134 million, 1.3%).

The total equity in the balance sheet of the banking system at the end of the third quarter amounted to BGN 19.3 billion, by BGN 999 million (5.4%) more than at the end of June. The increase in equity during the period was mainly due to the increase in profit.