Banking sector profits in Bulgaria reached 1.08 billion euros by the end of July

Banking sector profits in Bulgaria reached 1.08 billion euros by the end of July. This represents an increase of 7 reason 73 million euros compared to the same period last year. If the current growth rate is maintained, 2024 is expected to end with a new record result, surpassing the achievement of 1.89 billion euros from the previous year.

Lending and interest income

The strong financial performance is due to the ongoing boom in lending, which is not currently identified as a problem by the Bulgarian National Bank (BNB). Net interest income for the first half of the year grew by 19.5%, reaching 1.69 billion euros.

Profit distribution and fee income

DSK maintains its position as the largest bank by assets in the country, reporting the highest profit since the beginning of the year in the amount of 290 million euros.

A different dynamic is observed in the fees and commissions segment. Some of the large banks even reported a decline in fee and commission income. Net income from them reaches 452 million euros, which is a growth of 4.2% (or 18 million euros) on an annual basis. However, this growth is significantly weaker compared to previous years. The reason for this is the gradual phasing out of currency conversion revenues, which is related to the process of introducing the euro in Bulgaria.