BANKS' PROFIT STANDS AT BGN 393 MLN AT THE END OF JULY

The main reason for the improved performance of banks is the reduction of their impairments on bad loans – by BGN 110.3 mln, or 15% year-on-year

Bulgarian banks' profit for the January 1 - July 31, 2012 period stood at BGN 393 mln, reporting some 4.52% growth. In absolute terms, the increase amounts to BGN 17 mln. The positive result for July alone is BGN 69.5 mln, registering an increase of 14% year-on-year. This is the data of the Bulgarian National Bank (BNB), published on the website of the institution, cited by Klassa daily.

The main reason for the improved performance of banks is the reduction of their impairments on bad loans – by BGN 110.3 mln, or 15% year-on-year to BGN 630 mln for the first seven months of 2012. In July alone, impairments totaled BGN 88 mln, registering a decline of 24% year-on-year.

The total assets of financial institutions increased by 0.6% (BGN 511 mln). The money attracted by banks increased by 0.7% to BGN 481 mln in July. The money attracted from non-financial institutions - firms - registered the highest growth – 3.9% or BGN 843 mln.

Individual and household deposits posted the fastest growth in July since the beginning of the year – 1.3%, or BGN 439 mln. As a result, 'funds borrowed from the public' reached half of the entire resource of the Bulgarian banking system.

Gross loans (loans to banks excluded) grew by BGN 284 mln. This was partly due to corporate clients – BGN 310 mln. Consumer loans dropped by 0.4%, or BGN 35 mln. Housing mortgage loans, however, remained unchanged. Income from interest rates declined by BGN 109 mln, while the cost of interest rates increased by BGN 57.7 mln. The net income from fees and commissions also decreased by BGN 6 mln to BGN 440 mln.