site.btaJan-Oct 2022 Banking System Profit up 40.9% Y/Y – Central Bank

As of 31 October 2022, the profit of the banking system was BGN 1.7 billion, BGN 500 million (40.9%) more compared to the profit reported for the first ten months of 2021, the Bulgarian National Bank (BNB) said on Wednesday. 

In October the assets of the banking system increased by BGN 2.2 billion (1.4%) to BGN 151.0 billion. The monthly growth was mainly contributed to by the loans and advances, whose share in the structure of balance-sheet assets increased from 60.1% to 61.6%.

The liquidity coverage ratio increased to 253.5% at the end of October (from 235.9% at the end of September). The liquidity buffer was BGN 38.4 billion, and the net liquidity outflows were BGN 15.1 billion (BGN 41.7 billion and 17.7 billion, respectively, at the end of September).

The net stable funding ratio (NSFR) reported as of 30 September 2022 was 158.9%, with a minimum regulatory requirement of 100%. The end-September available stable funding (the numerator of the NSFR) was BGN 114.7 billion and the required stable funding (the denominator of the NSFR) was BGN 72.2 billion.

The gross loan portfolio of the banking system increased by BGN 670 million (0.8%) to BGN 84.6 billion. During the reporting month, there was an increase in the loans to households (by BGN 368 million, 1.1%), to other financial corporations (by BGN 177 million, 2.9%), to nonfinancial corporations (by BGN 84 million, 0.2%), and to the general governments sector (by BGN 41 million, 4.3%).

Compared to end-September, the deposits in the banking system grew by BGN 1.9 billion (1.5%) to BGN 130.0 billion. There was an increase in the deposits of households (by BGN 601 million, 0.8%), of nonfinancial corporations (by BGN 457 million, 1.1%), as well as of credit institutions (by BGN 930 million, 12.6%) and of the general governments sector (by BGN 58 million, 1.6%). There was a decrease in the deposits of other financial corporations (by 183 million, 4.6%).

The total equity in the balance sheet of the banking system at the end of October was BGN 16.8 billion, marking an increase of BGN 159 million (1.0%) compared to end-September, which is due to the increase in profit during the period.