The Association of Banks in Bulgaria (ABB) published its quarterly information with key highlights on the economy and the banking sector in Bulgaria in the second quarter of 2025. The quarterly information materials are prepared by the Banking Policy and Analyses Division at the ABB.
HIGHLIGHTS
▪ In Q1 2025, the Bulgarian economy grew by 3,1% y-o-y with the largest contribution from private consumption, gross fixed capital formation and government consumption.
▪ Inflation accelerated by 2,9% y-o-y in Q2 2025.
▪ At the end of June 2025, the unemployment rate in Bulgaria reached 3,6%.
▪ At the end of June 2025, the budget deficit is 1,6% of the projected GDP.
▪ At the end of the second quarter of 2025, the total assets of the banking system reached BGN 201,9 billion, growing by 13,2% y-o-y (92,5% of the projected GDP).
▪ At the end of the second quarter of 2025, the banking sector reported BGN 1 967,9 million in net profit. quarter of 2025, the banking sector reported BGN 1 967,9 million in net profit.
▪ The financial result of the banking system is influenced by high credit activity and better quality of banks' credit portfolios.
▪ In the second quarter of 2025, credit growth remains high both for households and businesses, with the share of non-performing housing loans continuing to decline.
▪ As of the end of June 2025, there was a decrease in the interest rates on newly contracted housing loans in BGN and in EUR, on newly contracted consumer loans in BGN, as well as on newly agreed loans for non-financial corporations in BGN and in EUR.
▪ In the second quarter, there was an increase in interest rates on newly contracted consumer loans in EUR and deposits for non-financial corporations in BGN and a decrease in interest rates on deposits for households in BGN and EUR and deposits for non-financial corporations in EUR.
The ABB issue “The economy and the banking sector in Bulgaria – Q2 2025” can be read and downloaded here.