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 third quarter of 2025. The quarterly information materials are prepared by the Banking Policy and Analyses Division at the ABB.
HIGHLIGHTS
▪ In Q2 2025, the Bulgarian economy grew by 3,5% y-o-y with the largest contribution from government consumption and gross fixed capital formation.
▪ Inflation accelerated by 3,7% y-o-y in Q3 2025. ▪ At the end of September 2025, the unemployment rate in Bulgaria reached 3,5%.
▪ At the end of September 2025, the budget deficit is 2,7% of the projected GDP.
▪ At the end of the third quarter of 2025, the total assets of the banking system reached BGN 210,1 billion, growing by 15,2% y-o-y (95,1% of the projected GDP).
▪ At the end of the third quarter of 2025, the banking sector reported BGN 2 826,8 million in net profit.
▪ The financial result of the banking system is influenced by high credit activity and the preservation of the quality of banks' credit portfolios.
▪ In the third quarter of 2025, credit growth remained high for both households and companies.
▪ As of the end of September 2025, there was a decrease in interest rates on newly contracted housing loans in EUR, on newly agreed consumer loans in EUR, as well as on newly contracted loans to enterprises in EUR.
▪ In the third quarter, there was a slight increase in interest rates on newly contracted loans in BGN and an increase in deposits in EUR, as well as a decrease in interest rates on deposits in BGN for households and deposits to enterprises.
The ABB issue “The economy and the banking sector in Bulgaria – Q3 2025” can be read and downloaded here.