site.btaBulgaria's Banking System Profit Up 8.7% to Nearly BGN 2 Bln in H1 2025, Y/Y

The profit of Bulgaria’s banking system increased by 8.7% year-on-year, reaching BGN 1.967 billion in the first six months of 2025, according to data from the Bulgarian National Bank. By comparison, the banking sector booked a profit of BGN 1.81 billion in the same period of 2024.

Net interest income grew by 1.1% year-on-year, or BGN 29 million, totalling BGN 2.8 billion at the end of June 2025. This figure includes BGN 3.375 billion in interest income and BGN 613.6 million in interest expenses.

Net fee and commission income rose by BGN 69 million, or 8.8%, year-on-year to BGN 849 million. Fee and commission income for the first six months of this year reached BGN 1.102 billion, while fee and commission expenses amounted to BGN 253.9 million.

In the second quarter of 2025, banking system assets grew by BGN 4.3 billion (2.2%) to BGN 201.9 billion at the end of June.

The gross credit portfolio of the banking system – which includes non-financial corporations, households, other financial corporations and the general government - expanded by BGN 3.3 billion, or 2.9%, on a quarterly basis, reaching BGN 117.4 billion. Household loans saw the largest growth, increasing by BGN 2.7 billion (5.3%), including BGN 2.4 billion in loans secured by residential property. Loans to non-financial corporations grew by BGN 617 million (1.1%), loans to other financial corporations rose by BGN 58 million (0.6%), while loans to the general government decreased by BGN 13 million (1.5%).

Gross non-performing loans and advances stood at BGN 3.941 billion at the end of June, up from BGN 3.813 billion at the end of March. They accounted for 2.99% of total gross loans and advances, compared to 2.96% at end-March. Net non-performing loans and advances amounted to BGN 1.950 billion at the end of June, up from BGN 1.880 billion at the end of March, representing 1.52% of total net loans and advances (compared to 1.50% at end-March).

In the second quarter of 2025, deposits in the banking system increased by BGN 3.8 billion (2.3%) to BGN 170.6 billion at the end of June. Household deposits increased by BGN 2.4 billion (2.6%), those of credit institutions rose by BGN 1.1 billion (7.2%), and those of the general government sector by BGN 724 million (18.2%). Deposits of non-financial corporations decreased by BGN 314 million (0.6%) and those of other financial corporations by BGN 137 million (2.9%).

The impairment costs on financial assets not measured at fair value through profit or loss amounted to BGN 249 million in the first six months of 2025, a decrease of BGN 28 million, or 10%, compared to the same period in 2024.