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 2021.
Highlights:
▪ In Q1 2021 the Bulgarian economy contracted by 0,5% on an annual basis due to a drop of the net export, while the private consumption and government consumption are with positive contribution
▪ The inflation grew by 2,2% year-on-year in Q2 2021
▪ As of the end of June 2021 the unemployment in Bulgaria decreased to 6%
▪ The budget surplus was 0,1% of the GDP as of the end of Q2 2021
▪ As of the end of Q2 2021 the total assets of the banking system were at the amount of BGN 128,48 billion (103,2% of the forecasted GDP)
▪ In Q2 2021 the net profit of the banking sector was BGN 309 million (a drop of 11,5% on a quarterly basis)
▪ The state of the economic environment continued to affect the activities and the results of the banking sector. The dynamics in lending, net interest income, net income from fees and commissions, the low interest rates, the impairment expenses and accrued provisions, the management of the quality of the credit portfolio influenced the financial result of the sector
▪ The lower expenses for restructuring funds and the deposit guarantee scheme, as well as some one-off effects observed in the financial statements of some banks, as well as received dividends from subsidiaries, influenced the financial result of the system too
▪ As of the end of June 2021, the total gross amount of deferred loans under the Procedure for Deferral and Settlement of Liabilities Payable to Banks and their Subsidiaries – Financial Institutions was BGN 9,422 billion, BGN 7,348 of which for non-financial corporations and BGN 2,075 for households
▪ The average interest rates on new loans and on new deposits with agreed maturity retained their low values
The ABB issue “The economy and the banking sector in Bulgaria – Q2 2021” can be read and downloaded here.