The Association of Banks in Bulgaria (ABB) published its annual information with key highlights on the economy and the banking sector in Bulgaria in 2025. The annual as well as the quarterly information materials are prepared by the Banking Policy and Analyses Division at the ABB.
HIGHLIGHTS
▪ In 2025 the Bulgarian economy increased by 3,1% on annual basis
▪ The inflation accelerated to 3,5% year-on-year in 2025
▪ In 2025, the unemployment in Bulgaria remains at 3,5%
▪ The budget deficit reached 3,0% of the projected GDP 2025
▪ As of the end of 2025 the total assets of the banking system grew by 18,5% to BGN 227,0 billion, or 100,1% of the forecasted GDP
▪ In 2025 the net profit of the banking sector was BGN 3,628 billion
▪ In 2025, the banking sector operates in conditions of increased uncertainty in the external environment. The main activity of the banking sector in Bulgaria was aimed at preparing for the adoption of the euro and the country's accession to the eurozone.
▪ The financial result of the banking system is influenced by the double-digit growth in the volume of loans in all business segments, which is reflected in net interest income and net income from fees and commissions. Despite the increased lending activity in 2025, the profit of the banking sector remained lower than that reported in the previous year.
▪ In 2025, lending activity increases, both for companies and households.
▪ Average interest rates on newly contracted term deposits decreased at the end of last year, and newly contracted corporate loans and housing loans decreased at the end of 2025.
The ABB issue “The economy and the banking sector in Bulgaria in 2025” can be found and downloaded here.