BANK PROFITS CONTINUE TO DECLINE, ALBEIT AT A SLOWER RATE
The profit of the Bulgarian banking system was BGN 214 mln for the first four months of the year, showed data of the Bulgarian National Bank, published yesterday. This figure is only BGN 4 mln (1.7%) smaller than the respective amount of BGN 218 mln, recorded in the same period of 2010, which proves the fact that banks have continued to counter the declining trend. They have profits to the amount of BGN 1.78 mln per day over the first four months of the year.
In April alone, BNB statistics reported a total financial result of BGN 57 mln, compared to BGN 48 mln for the same month last year, an increase of 19%. We should bear in mind that banks reported a profit of BGN 157 mln for the first quarter of the year, BGN 70 mln for March, BGN 41.2 mln for February and BGN 46 mln for January. The decline, on an annual basis, was reduced to single-digit figures as early as February.
In 2010, the positive financial result of banks shrank by over 20% reaching BGN 617 mln, while their depreciation costs increased by 26% to the amount of BGN 1.31 bn. In 2009, the crisis trimmed bank profits by 44%, on an annual basis and these stood at BGN 780 mln.
The increasing trend in depreciations has continued since the beginning of 2011. For the first four months of the year, these reached BGN 404.2 mln, marking a 5.2% growth on an annual basis. In the period from January to March, depreciation costs amounted to BGN 299 mln but in March alone these amounted to BGN 85 mln.
Gross loans (excluding credit institutions) showed a growth of BGN 228 mln (0.4%), entirely due to the impact of lending activities on the part of small and medium-sized banks, stated BNB data. April’s growth in corporate loans of 0.8%, has been the largest monthly increase since the beginning of the year. However, no change has been noticed regarding crediting of the population - the growth in mortgage loans of 0.2% was accompanied by another even minor reduction in the consumer segment (of less than 0.1%).
