site.btaBanks in Bulgaria Report Profit Growth of BGN 18 Mln in September Y/Y

The banking system in Bulgaria reported a profit of BGN 2.7 billion as of September 30, 2024, which is BGN 18 million leva (0.7%) more than the one realized in the first nine months of the previous year 2023, indicated the Bulgarian National Bank (BNB) Banks in Bulgaria quarterly publication, published on its website.

The gross loan portfolio of the banking system (including the sectors Non-financial Corporations, Households, Other financial corporations and General Government) in the period July-September increased by BGN 2.4 billion (2.3%) to BGN 106.6 billion. The increase was mainly formed by loans to households (by BGN 2.3 billion, 5.3). There was also an increase in loans to non-financial enterprises (by BGN 299 million, 0.6%) and to the General Government sector (by BGN 37 million, 4%), while those to other financial enterprises decreased (by BGN 231 million, 2.6%

During the period July - September, deposits in the banking system increased by BGN 2.8 billion (1.8%) to BGN 155 billion, the data show. This was mainly due to the increase in deposits of households (by BGN 1.4 billion, 1.7%) and non-financial enterprises (by BGN 1 billion, 2.1%). There was also an increase in deposits of credit institutions (by BGN 550 million, 5%) and other financial enterprises (by BGN 221 million, 6.2%), while those of the General Government sector decreased (by BGN 441 million, 10.5%).

Equity in the balance sheet of the banking system increased by BGN 984 million (4.7%) compared to the end of June and reached BGN 22.1 billion as of September 30.

The analysis notes that in the third quarter of the past year, the banking sector in this country continued to operate under increased uncertainty in the external environment and under relatively favourable macroeconomic conditions. The main positive contribution to economic growth was the continued strong private consumption, which is due to an increase in employment and wages in real terms, as well as the weak incentives for households to save given the low interest rates on bank deposits, the BNB pointed out.