BNB Head: Bulgaria Banks with 50% Smaller Profit in 2009

Central Bank Governor Iskrov has said 2009 had been hard but good for the banking system. Photo by BGNES

The combined profit of the banks in Bulgaria will decline by 50% in 2009 compared to 2008.

This has been forecast by Ivan Iskrov, head of the Bulgarian National Bank, as cited by the Pari Daily.

Thus, the total profit of the Bulgarian banks is expected to amount to BGN 700 M in 2009.

The BNB forecasts that the number of non-performing loans will be twice higher at the end of 2009 compared to 2008 reaching 6%, up from 2,4% a year ago.

In the first ten months of 2009, the Bulgarian banking system registered a profit of BGN 656,5 M, which is 46% less than in the same period of 2008,

“These funds will be capitalized, which will lead to a strengthening of the system. The past year has been hard but good for the banking system,” Iskrov is quoted as saying.

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