BULGARIAN AMERICAN CREDIT BANK'S NET LOSS WIDENS 74% IN JANUARY-SEPTEMBER 2011

The operating profit of Bulgarian American Credit Bank (BACB) plunged 73 per cent year-on-year to 7.8 million leva in the first nine months of 2011, the bank's financial report showed.

Its interest income fell by 64 per cent on the year to 14 million leva in the period. Operating expenses dropped by 2.4 per cent chiefly because of a 5.6 per cent decline in administrative costs.

The bank recorded a net loss of 17.2 million leva in January-September, widening 74 per cent in annual terms. BACB blamed the result on higher loan impairments, which stood at 25 million leva in the nine-month period.

Non-performing loans (overdue by more than 90 days) accounted for 30.1 per cent of the bank's total loan book on October 1.

BACB's capital adequacy ratio was 17.6 per cent, higher than the 12 per cent required by the Bulgarian National Bank (BNB), but lower than the level recorded in 2010 of 23.3 per cent.

Deposits rose by 34.5 per cent to 425.5 million leva, while the number of customers increased by 22.3 per cent. Net loans, however, declined to 561.7 million leva from 456.3 million leva, but continued to represent the bulk of the bank's assets.