In the third quarter of 2022 (July – September), the assets of the banking system grew by BGN 6.8 billion (4.8% t) to BGN 148.9 billion at the end of September, with the loan portfolio showing the largest increase, shows the Banks in Bulgaria quarterly publication, prepared by the Banking Supervision Department of the Bulgarian National Bank (BNB). It provides a brief analytical overview of the position of the banking system over the past quarter, prudential regulations, and balance sheets and income statements by groups of banks and by banks, said the BNB.
In the July-September period, an increase was also observed in the most liquid balance sheet item “cash, cash balances with central banks and other demand deposits”, as well as in debt securities. The in the banking system recorded a higher quarterly increase compared to the previous two quarters of last year, according to the BNB analysis.
The five significant banking institutions (according to the criteria of the European Central Bank) at the end of September 2022 made up for 66.7% of the assets of the banking system, and the less significant ones made up 29.8% (with 66.4% and 30.3% at the end of June), the analysis notes.
Compared to the end of June 2022, the total amount of gross loans and advances increased by BGN 3.2 billion (3.6%) to BGN 93 billion at the end of September, the analysis shows. Receivables from credit institutions during the quarter increased by 2.2% (BGN 198 million) to BGN 9 billion at the end of the period. The gross credit portfolio of the banking system grew by 3.7% (BGN 3 billion) and reached BGN 84 billion.
It was also indicated that credit activity remained high both among households and in the segment of non-financial enterprises.
And in the third quarter of 2022, the share of non-performing loans continued to decrease, and this dynamic was determined entirely by the growth of the loan portfolio, the BNB analysis notes.
During the July-September period, deposits in the banking system increased by BGN 6.4 billion (5.2%) to BGN 128.2 billion, the analysis also states. Deposits of non-financial enterprises increased most significantly, by 10.5% or BGN 4.0 billion. Growth was also recorded in the deposits by households – by 2.5% or BGN 1.7 billion; by credit institutions (with 7% , BGN 482 million), by the state government sector (by 3.6%, BGN 128 million), as well as by other financial enterprises (by 0.8%, BGN 32 million).
At the end of September, the share of deposits by residents was 90.8%, and by non-residents – 9.2%. The share in BGN was 59.2%, and that in EUR was 33%. The share of funds in other currencies increased from 7.5% to 7.7%, the analysis noted.
