The Banking System BGN 3 Million Less Profit Compared to 2018

As of end-December 2019, the assets of the banking system were BGN 114.2 billion, or by BGN 2.7 billion (2.4%) more compared to end-September. The dynamics of the balance sheet items in the fourth quarter of 2019 was influenced by the consolidation process in the banking sector.

At the end of 2019, the share of the balance sheet amount of loans and advances was 65.8%, that of cash, cash balances at central banks and other demand deposits - 15.9%, and of securities portfolios - 13.0%. The share of the five largest banks in the total assets of the banking system reached 62.1%.

The liquidity coverage ratio as at 31 December was 269.9% (264.0% at end-September). At the end of the year, the liquidity buffer was BGN 30.9 billion, and the net liquidity outflows - BGN 11.5 billion.

At end-December, gross loans and advances were BGN 94.4 billion, increasing by BGN 1.4 billion (1.5%) during the last quarter. Claims on central banks increased (by BGN 732 million, 5.8%), and those on credit institutions decreased (by BGN 1.0 billion, 6.5%). The gross loan portfolio of the banking system increased by BGN 1.7 billion (2.6%) and therein growth was reported for claims on other financial corporations (by BGN 923 million, 25.2%), on households (by BGN 532 million, 2.2%), on non-financial corporations (by BGN 120 million, 0.3%), and on the general governments sector (by 128 million, 15.9%).

The gross amount of non-performing loans and advances at end-December was BGN 6.1 billion (BGN 6.9 billion at end-September), and their share in total gross loans and advances decreased to 6.5% (compared to 7.4% three months earlier).

The net amount of non-performing loans and advances (after deduction of the impairment inherent to this classification category)...

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