site.btaBanks' Q1 Profits Grow by 6.5% from This Time Last Year

At the end of March, the banking system reported a profit of BGN 818 million, or BGN 50 million (6.5%) more than in the first quarter of 2023. The return on assets (ROA) stood at 1.85% as at end-March 2024, while the return on equity (ROE) stood at 15.83% (down from 1.91% and 17.61% respectively as at 31 March 2023), according to a quarterly publication, Banks in Bulgaria, prepared by the Banking Supervision Department of the central bank and published on the Bank's website. 

The total net operating income of the banking system at the end of March reached BGN 1.9 billion, increasing by BGN 194 million (11.7%) compared to that reported for the first three months of 2023 as a result mainly of the increase in net interest income.

The assets of the banking system in the first quarter of 2024 increased by 2.5% (BGN 4.3 billion) and amounted to BGN 176.3 billion at the end of March.

In the January-March 2024 period, deposits in the banking system increased by BGN 2.7 billion (1.8%) to BGN 150 billion, mainly due to the increase in household deposits (by BGN 1.7 billion, 2.1%).

In the first quarter of 2024, the banking system continued to operate in an uncertain macroeconomic environment, the central bank says. Nonetheless, there has been a weakening of inflationary pressures, which, combined with rising incomes, is having a favourable impact on final consumption and economic activity. The central bank urges lending institutions to manage their liquidity in line with the high degree of uncertainty and the likelihood of changes in the volume and structure of deposits arising from potential adverse changes in the financial position of enterprises and households.