The Bulgarian banking system posted a net profit of EUR 1.1 billion in the first six months of 2026, up 7.2% from a year earlier, according to data released by the Bulgarian National Bank (BNB) on July 31.
In nominal terms, the net financial result increased by EUR 73 million compared with the first half of 2025.
Banking system assets rose by EUR 1.5 billion, or 1.3%, during the second quarter to EUR 121 billion at the end of June.
Gross loans and advances increased by EUR 3.8 billion (4.8%) to EUR 83.1 billion. The gross loan portfolio expanded by EUR 2.7 billion (4%) to EUR 70.3 billion, driven mainly by household lending, which rose by EUR 1.7 billion (5.6%), including EUR 1.2 billion in residential mortgage loans. Loans to non-financial corporations increased by EUR 684 million (2.3%).
Deposits grew by EUR 1.4 billion (1.4%) during the quarter to EUR 101.3 billion, mainly due to higher household and other financial corporations' deposits. Deposits by non-financial corporations declined by EUR 164 million (0.6%).
Gross non-performing loans and advances fell by EUR 40 million to EUR 2.2 billion at the end of June, reducing their share of total gross loans and advances to 2.65% from 2.82% at the end of March.
Impairment expenses for financial assets totalled EUR 229 million in the first half of 2026, compared with EUR 127 million a year earlier. The liquidity coverage ratio stood at 261.2% at the end of June, down from 278.6% three months earlier.