Bulgarian banks' net profit soars 64% in 2023

The banking sector's net operating income came in at roughly 6.9 billion levs last year, the Bulgarian National Bank (BNB) said in a monthly report on the banking sector's performance on Wednesday. In 2022, banks in Bulgaria booked a net operating income of some 5.3 billion levs.

Gross interest income jumped to 5.88 billion levs in the review period from 3.63 billion levs the previous year. At the same time, gross fee and commission income went up to 1.86 billion levs from 1.76 billion levs.

The banks' total assets amounted to 172.1 billion levs at the end of 2023, up 4.2% month-on-month. In 2022, total assets stood at 155.4 billion levs.

Gross loans and advances in the review period totalled 106.3 billion levs, falling by 1.7% in monthly terms. The gross loan portfolio of the Bulgarian banking system amounted to 97.4 billion levs at the end of last year, compared to 86.1 billion levs a year earlier.

Compared to end-November, growth in household loans was the highest, at 4.1%, whereas loans to the general governments sector recorded an 11.8% decline.

At the end of 2023, deposits in the banking system reached 147.3 billion levs, or 4.2% higher than a month earlier.

The highest increase in deposits was posted by other financial corporations - at 7.6%, followed by credit institutions with 7.2%. Meanwhile, deposits of the general governments sector slipped by 2.1%, data showed.

(1 euro = 1.95583 levs)