Bulgarian Development Bank Reports 35% Increase in Net Profit Y/Y in Jan-Sept 2014

The Bulgarian Development Bank (BDB) reported a net profit of BGN 23.7 M, up by 35% on the year, for the first nine months of 2014.

The BDB reported increased profit from its core business against the backdrop of lower interest rates on its loans.

Administrative costs of the BDB fell by 18% and the costs related to loan impairment charges and other credit risk provisions decreased by around 1/3, according to a media statement of the BDB, as cited by investor.bg.

In the period January – September, 2014, the collection rate from loans unserviced for over 90 days increased.

The share of problem loans fell to 11.9% of the total, compared to a rate of 17.3% at the end of 2013, and an average of almost 18% for Bulgaria’s banking system, according to the BDB.

The bank management predicts profit growth by the end of 2014 on the basis of the report on the period January-September.

“We expect out profit to treble on an annual basis by end-2014,”said Dimo Spasov, CEO of the BDB.

Spasov informed that the financial results provided the BDB greater opportunities for supporting small and medium-sized enterprises through specific instruments.

In 2013, the BDB reported a profit of BGN 10.8 M, down by slightly over 50% from 2012.

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