site.btaTotal Amount of Gross Bank Loans and Advances Increases by BGN 2 Bln in Q2

In the second quarter, the total amount of gross loans and advances of the banking system increased by 2.2% (BGN 2 billion) to BGN 89.8 billion, said the Bulgarian National Bank (BNB) in its regular quarterly publication Banks in Bulgaria.

Receivables from credit institutions on a quarterly basis decreased by 3.6% (BGN 332 million) to BGN 8.8 billion at the end of June. The gross credit portfolio of the banking system increased during the period by 2.9% (BGN 2.3 billion) to BGN 81 billion, which was mainly due to household loans (by BGN 1.4 billion, 4.8%). An increase was also registered in loans for non-financial enterprises (by 1.4%, BGN 582 million) and for other financial enterprises (by 6.8%, BGN 354 million), while those for the public administration sector decreased by 8.2% (BGN 78 million).

In the resident structure of loans and advances, the share of receivables from residents amounted to 88% at the end of June, and that from non-residents was 12% (at 87.6% and 12.4% at the end of March, respectively).

In the currency structure of loans and advances, the share of receivables in BGN increased to 62.4% at the end of June, due to a decrease in that in EUR - to 33.5% (at 61.3% and 35.6%, respectively at the end of March). The share of loans and advances in other currencies during the period rose from 3%  to 4.1% at the end of June.

As of June 30, 2022, the profit of the banking system amounted to BGN 1 billion, BGN 357 million (54.2%) more compared to the first half of 2021. Due to the increase in profit, the return on assets improved to 1.43% at end-June 2022 and return on equity increased to 12.45% (from 1.02% and 8.21% respectively as at 30 June 2021).