Net profit of Bulgarian banks up 9% y/y in Jan-Oct 2012.

By bne IntelliNews December 3, 2012
The aggregate net profit of the banking sector rose by 9.2% y/y to BGN 560.6mn (EUR 286.6mn) in the first ten months of 2012 as the profit posted by banks in October only was almost double compared to October 2011, central bank data showed. The strong growth in the tenth month of the year was entirely on the back of lower provisions for impairment. At the same time the net interest income fell by 6% y/y in October and by 9.3% y/y since the start of the year, reflecting on the one hand the high funding costs of banks, due to the high deposit rates, and on the other hand, the contracted lending activity, which keep interest income below its year-ago levels.
2008 2009 2010 2011 Mar-12 Jun-12 Sep-12 Oct-12
Net profit
BGN mn 1,387 780 617 586 58 60 29 57
% 21.3 56.6 -21.0 -4.9 -17.0 70.7 -36.1 95.4
Net interest income
BGN mn 2,788 2,847 2,917 2,869 224 216 216 218
% 28.4 102.7 2.5 -1.7 -8.6 -13.8 -8.7 -6.0
Net fee&commission
BGN mn 783 735 760 786 65 66 64 71
% 16.3 106.3 3.4 3.5 -2.4 -4.3 0.4 5.5
Impairment
BGN mn 330 1,040 1,317 1,290 89 87 130 104
% -4.1 158.5 26.6 -2.0 4.6 -28.5 19.1 -10.7
Source: BNB
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