site.btaBanking Profit at BGN 2.1 Bln in January-July, Up by 5.7% Y/Y

As of 31 July 2024, the profit of the banking system was BGN 2.1 billion – by BGN 115 million (5.7%) more than that reported for the first seven months of 2023. The accrued impairment costs on financial assets not measured at fair value through profit or loss increased by BGN 94 million (41.6%) compared to the same period last year, and at the end of July 2024 they amounted to BGN 321 million, the Bulgarian National Bank said on Friday. 

At the end of July 2024, the total assets of the banking system amounted to BGN 179.1 billion – by BGN 671 million (0.4%) more than at the end of June. 

As of 31 July 2024, the liquidity coverage ratio was 249.7% (246.7% at the end of June). The liquidity buffer was BGN 48.0 billion, and the net liquidity outflows amounted to BGN 19.2 billion (compared to BGN 51.2 billion and BGN 20.8 billion, respectively, as of 30 June 2024). 

At the end of July, the total gross loans and advances were BGN 116.9 billion and compared to end- June they increased by BGN 2.8 billion (2.4%). Claims on credit institutions increased by BGN 1.7 billion (16.8%) to BGN 11.7 billion. Over the month the gross loan portfolio2 grew by BGN 1.1 billion (1.0%) to BGN 105.2 billion. An increase was reported in loans to households (by BGN 843 million, 1.9%), to other financial corporations (by BGN 200 million, 2.2%) and to non-financial corporations (by BGN 76 million, 0.2%), whereas loans to the general governments sector decreased by BGN 52 million (5.7%). 

At the end of July 2024, the total deposits in the banking system reached BGN 152.6 billion, growing over the month by BGN 292 million (0.2%). There was an increase in deposits of non-financial corporations (by BGN 373 million, 0.8%) and of households (by BGN 341 million, 0.4%). Deposits of credit institutions decreased (by BGN 231 million, 2.1%), as did those of the general governments sector (by BGN 117 million, 2.8%) and of other financial corporations (by BGN 74 million, 2.0%). 

At the end of July, the total equity in the balance sheet of the banking system stood at BGN 21.5 billion, by BGN 360 million (1.7%) more than at end-June, mainly due to the higher profit, with the additional contribution of the increase in accumulated other comprehensive income and in other reserves. 

At the end of June 2024, the regulatory capital of the banking system was BGN 19.9 billion, and the total risk exposure amount was BGN 88.3 billion. The total capital adequacy ratio of the banking system, as of 30 June 2024, was 22.50%, that of Tier 1 capital – 21.20%, and that of Common Equity Tier 1 capital – 20.78%. The leverage ratio (using a ‘fully phased-in’ definition of Tier 1 capital), reported as of 30 June 2024, was 10.24%, with a minimum regulatory requirement of 3.0%. The net stable funding ratio (NSFR), reported as of 30 June 2024, was 158.4%, with a minimum regulatory requirement of 100%. At the end of June, the available stable funding (the numerator of the NSFR) was BGN 141.0 billion, and the required stable funding (the denominator of the NSFR) was BGN 89.0 billion.