Financial and business news from Bulgaria

BACB with over 20% growth of assets and borrowed funds

In the face of an ongoing COVID-19 pandemic and a complicated economic situation, Bulgarian-American Credit Bank successfully ends the first quarter of 2021. As of 31.03.2021 the Bank's assets reached BGN 1 951 321 thousand. The figures unequivocally show a growth of 21.67% compared to data from the first quarter of 2020. The growth for the banking system in the same period was 10.64%.
BACB continues to expand its loan portfolio by increasing the share of mortgage loans to individuals and SMEs. The achieved increase of 11.56% over a one-year period exceeds more than twice the average growth of the banking market on this indicator (5.29%).

Impressive are the results on deposits and total borrowed funds in the first quarter of 2021. Savings for citizens and businesses are growing by 23.71% in both segments. The data shows almost double growth compared to that of the banking system, which marks 13.16% annual growth in borrowed funds.

Due to the continuing trend of very low interest rates and narrowed interest margins, the banking system reported a decrease in net interest income by an average of (-2.92%). BACB retains its good performance on this indicator and reports only -0.53% decrease in net interest income.

Contribution to the good results of the Bank during the period considered has the achieved decrease in the financing price, which is reflected in the reduction of interest costs on attracted resources by -20.27% to BGN 1.314 million.

As a result of the restrictive measures imposed in relation to the COVID-19 pandemic and its negative consequences for the entire banking system, in the first quarter of 2021 there was a decrease in net income from fees and commissions by -0.44%, with the decrease on average for the banking market being 4.33%.

BACB's net profit amounts to BGN 3.572 million after tax, with a single negative effect of renegotiated interest on loans for the period. The Bank has managed to maintain a low level of operating costs, despite the significant increase in the number of customers and their transactions, thanks to the digital channels and technological innovations it implements.

The capital position of the Bulgarian-American Credit Bank keeps its stable level with parameters above the regulatory requirements during this difficult year. Following the relevant corporate and regulatory decisions, capitalisation of profits for 2020 is expected to lead to growth in this position for BACB as well.

The full reports of BACB JSC, as well as a management report are available on the bank's corporate website https://www.bacb.bg/bg/za-investitori in the Investor Relations section.



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