Suzanne
13-12-06, 05:54 PM
Bulgarian National Bank governor Ivan Iskrov expects that the combined profits of banks in Bulgaria will reach 700 million leva by the end of 2006.
This would be 20 per cent higher than 2005.
Iskrov was speaking at the annual conference of Bulgaria's Association of Commercial Banks. He said that the total assets of the country’s banks were expected to grow by 22 per cent year-on-year to 40 billion leva.
In spite of growing competition on the credit market, the return on assets was retaining the 2005 level of 2.05 per cent, while return on capital was 22.1 per cent, Pari quoted Iskrov as saying. These two indicators were, respectively, 1.2 per cent and 16 per cent in the European Union.
According to BNB data, commercial banks have managed to maintain the quality of their portfolios. The share of standard credits increased slightly from 92.3 per cent at the end of 2005 to 92.5 per cent as at September this year.
Iskrov told the conference that Bulgaria would register in 2006 the highest level of growth since the start of economic reforms in the country.
Going by BNB data, the pace of growth of the mortgage portfolio of Bulgaria’s 34 commercial banks increased to 5.4 per cent in October after posting increments, respectively, of 3.5 per cent and 4.5 per cent in August and September. In addition to the 157 million leva granted in mortgage loans in October, banks lent 319 million in commercial loans, mainly euro-denominated. Exposures to business clients increased by two billion leva over the past 12 months. The overall credit portfolio of the banking sector grew by 22.6 per cent, or 3.8 billion leva, over the past 12 months, a rate within the guidelines issued by BNB.
The collective profit of Bulgaria's banks increased by 20 per cent year-on-year to 605 million leva from January to the end of October, according to the BNB data.
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This would be 20 per cent higher than 2005.
Iskrov was speaking at the annual conference of Bulgaria's Association of Commercial Banks. He said that the total assets of the country’s banks were expected to grow by 22 per cent year-on-year to 40 billion leva.
In spite of growing competition on the credit market, the return on assets was retaining the 2005 level of 2.05 per cent, while return on capital was 22.1 per cent, Pari quoted Iskrov as saying. These two indicators were, respectively, 1.2 per cent and 16 per cent in the European Union.
According to BNB data, commercial banks have managed to maintain the quality of their portfolios. The share of standard credits increased slightly from 92.3 per cent at the end of 2005 to 92.5 per cent as at September this year.
Iskrov told the conference that Bulgaria would register in 2006 the highest level of growth since the start of economic reforms in the country.
Going by BNB data, the pace of growth of the mortgage portfolio of Bulgaria’s 34 commercial banks increased to 5.4 per cent in October after posting increments, respectively, of 3.5 per cent and 4.5 per cent in August and September. In addition to the 157 million leva granted in mortgage loans in October, banks lent 319 million in commercial loans, mainly euro-denominated. Exposures to business clients increased by two billion leva over the past 12 months. The overall credit portfolio of the banking sector grew by 22.6 per cent, or 3.8 billion leva, over the past 12 months, a rate within the guidelines issued by BNB.
The collective profit of Bulgaria's banks increased by 20 per cent year-on-year to 605 million leva from January to the end of October, according to the BNB data.
www.sofiaecho.com