site.btaJanuary Banking System Profit Amounts to BGN 183 Mln

The profit of the banking system at the end of January 2024 was BGN 183 million, an increase of 59.3% compared to the first month of the previous year, the Bulgarian National Bank said on Thursday.

At the end of December 2023, the regulatory capital of the banking system was BGN 18.2 billion, and the total amount of risk exposures amounted to BGN 83.9 billion. The ratio of the total capital adequacy of the banking system as of December 31, 2023. was 21.65%, Tier 1 capital was 20.51%, and Tier 1 common equity was 20.07%.

In January, the assets of the banking system increased by BGN 418 million (0.2%) to BGN 172.5 billion. The share of loans and advances increased to 64.5% at the end of January 2024, and this of debt securities – up to 15.3%, respectively 60.0% and 15.1% at the end of December 2023. During the period, the share of the cash, cash balances with central banks and other demand deposits in the balance sheets assets decreased from 21.1% to 16.4%.

Total deposits in the banking system at the end of January 2024 were BGN 147.4 billion, increasing by BGN 72 million (0.05%)  during the month. Deposits of other financial enterprises increased (by 542 million BGN, 13.3%), of households (by 248 million BGN, 0.3%), of credit institutions (by 182 million BGN, 1.7%), as well as those of the public administration sector (by BGN 84 million, 2.2%). In the case of deposits of non-financial enterprises, a decrease was recorded by BGN 984 million (2.1%).

The balance sheet equity capital of the banking system at the end of January amounted to BGN 20.2 billion and compared to the end of December 2023 it increased by BGN 192 million (1.0%).