site.btaCentral Bank: Bulgarian Banks Report 7.1% Profit Increase in First Half of 2024

The banking system's profit as of June 30, 2024, stood at BGN 1.8 billion, shows a report published by the Bulgarian National Bank (BNB) on its website on Wednesday. Compared to the same period last year, the net interest income increased by BGN 462 million (20.4%) to BGN 2.7 billion at the end of June 2024, and the net fee and commission income – by BGN 51 million (7.0%) to BGN 780 million.

In the second quarter of 2024, the assets of the banking system grew by BGN 2.1 billion (1.2%) and at the end of June amounted to BGN 178.4 billion.

The liquidity coverage ratio at the end of June 2024 was 246.7% (243.3% at the end of March).

Gross loans and advances during the quarter increased by BGN 114 million (0.1%) to BGN 114.2 billion.

Loans to households reported a quarterly growth of BGN 2.3 billion (5.5%) and those to nonfinancial corporations – by BGN 1.4 billion (2.8%). Loans to other financial corporations also increased (by BGN 306 million, 3.6%), as did loans to the general governments sector (by BGN 66 million, 7.8%).

In the second quarter of 2024, deposits in the banking system increased by BGN 2.2 billion (1.5%) to reach BGN 152.3 billion at the end of June. Growth was registered in deposits of households (by BGN 2.2 billion, 2.6%), of non-financial corporations (by BGN 1.2 billion, 2.6%), and of the general governments sector (by BGN 9 million, 0.2%). A decrease was reported in deposits of credit institutions (by BGN 599 million, 5.1%) and of other financial corporations (by BGN 578 million, 13.8%).

Total equity in the balance sheet of the banking system at the end of June amounted to BGN 21.1 billion, having increased by BGN 453 million (2.2%) compared to end-March.