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 2023. The quarterly information materials are prepared by the Banking Policy and Analyses Division at the ABB.
HIGHLIGHTS
▪ In Q1 2023, the Bulgarian economy grew by 2,3% y-o-y following the formation of positive contribution of net exports, gross fixed capital formation and private consumption.
▪ The inflation accelerated by 8,8% year-over-year in Q2 2023
▪ At the end of June 2023, the unemployment rate in Bulgaria remained at 4,0%
▪ At the end of June 2023, the budget surplus stood at 0,1% of the projected GDP
▪ At the end of the second quarter of 2023, the total assets of the banking system reached BGN 161,09 billion, growing by 13,4% y-o-y (87,3% of the GDP growth forecast)
▪ At the end of the second quarter of 2023, the banking sector reported BGN 1 689 million in net profit
▪ The financial result in the banking system is affected by the continuing growth of loans, widening net interest income and still relatively low levels of the interest rates on deposits
▪ In Q2 2023 credit growth remains high both for the households and for the nonfinancial corporations as the share of non-performing loans continues to decline for households.
▪ As of the end of Q2 2023 an increase in the interest rates on newly contracted loans and deposits to non-financial corporations in BGN and EUR is observed.
▪ As of the end of June 2023 an increase in the interest rates on household deposits and a decrease in the interest rates on newly contracted housing loans in EUR and BGN are reported.
The ABB issue “The economy and the banking sector in Bulgaria – Q2 2023” can be read and downloaded here.