Italy's UniCredit Group on Tuesday announced the sale, through its Bulgarian subsidiary UniCredit Bulbank, of a portfolio of non performing loans (NPLs) to Debt Collection Agency (DCA). The portfolio consists entirely of Bulgarian loans granted to corporate customers by UniCredit Bulbank and has a legal claim value of some EUR 93 million (USD 99.3 million), UniCredit said in a statement. The impact of the sale, which is part of the group's on-going activities to sell non-core assets and strengthen its credit profile, will be reflected in first quarter 2017 accounts. DCA is the Bulgarian subsidiary of Norwegian debt solutions provider B2Holding.
Source: Capital (17.01.2017)

Italy's UniCredit Group on Tuesday announced the sale, through its Bulgarian subsidiary UniCredit Bulbank, of a portfolio of non performing loans (NPLs) to Debt Collection Agency (DCA). The portfolio consists entirely of Bulgarian loans granted to corporate customers by UniCredit Bulbank and has a legal claim value of some EUR 93 million (USD 99.3 million), UniCredit said in a statement. The impact of the sale, which is part of the group's on-going activities to sell non-core assets and strengthen its credit profile, will be reflected in first quarter 2017 accounts. DCA is the Bulgarian subsidiary of Norwegian debt solutions provider B2Holding.
Source: mediapool.bg (18.01.2017)

EIF signs guarantee deal with UniCredit to back innovative SMEs in CEE The European Investment Fund has signed a guarantee agreement with UniCredit, which will allow the Italy-based banking group to provide EUR 160 to small and medium-sized enterprises in eight countries in Central and Eastern Europe, the bank's Bulgarian unit said. The guarantee agreements with the banks in Bulgaria, Croatia, the Czech Republic, Slovakia, Hungary and Romania will be backed by the Investment Plan for Europe. Companies developing products, processes or services that are innovative or focus on research and development as well as applicants, who in the last 24 months have registered at least one patent or have received an award for innovation from an European organization, are eligible for a loan under the programme. Under the agreement, UniCredit Bulbank will be able to provide a total of EUR 15 million at preferential interest rates and reduced guarantee requirements. The maximum amount of a single loan under the scheme in Bulgaria will be EUR 3.75 million, while the minimum is set at EUR 25,000. The programme will have a duration of two years and can be extended by one year.
Source: investor.bg (19.01.2017)

Six banks, one refinery and a copper plant have declared the highest revenues for 2015, former finance minister Vladislav Goranov said. The top ten companies with the highest number of declared revenues are Post Bank, Central Cooperative Bank, LUKOil Neftochim Bourgas, UniCredit Bulbank, Aurubis Bulgaria, the National Electric Company, Allianz Bank Bulgaria, LUKOil Bulgaria, DSK Bank and Societe Generale Expressbank. In 2014, Bulgargas and GP Reinsurance also featured in this group. In 2016, the companies that paid the highest amount of corporate tax was OMV Bulgaria, followed by LUKOil Bulgaria and Shell Bulgaria. The top ten also included Saksa, Bent Oil, LUKOil Aviation Bulgaria, Petrol, Litex, Overgas Inc. and Eco Bulgaria.
Source: investor.bg (31.01.2017)

Bulgarian banks' net profit grows in 2016 The combined net profit of Bulgarian banks rose to 1.26 billion levs ($690.9 million/655 million euro) in 2016 from 898.4 million levs in 2015, according to central bank data. The banks' combined interest income dropped to 3.3 billion levs in 2016, which compares to 3.65 billion levs in 2015, figures posted on the website of the Bulgarian National Bank show. Fee and commission income totalled 1 billion levs last year, the same amount as in 2015. Total interest expenses in the review period dropped to 510.7 million levs, from 879.7 million levs in 2015. The banking sector's total net operating revenue in 2016 edged down to 4.1 billion levs, from 4.2 billion levs in 2015. The banks' total assets increased to 92 billion levs at the end of December, compared to 87.5 billion levs a year earlier. A total of 22 banks and five branches of foreign banks operated in Bulgaria as of end-December 2016.
Source: Capital (02.02.2017)

The management of the First Investment Bank will discuss attracting strategic partners First Investment Bank (FIB) reported a profit before tax and impairments amounting to BGN 255 million, and after them – BGN 90.2 million for 2016. During the year the bank has set aside provisions totaling to BGN 155 million. Fibank has recorded a growth in assets from 2% to BGN 8.9 billion, which ranks it in third place in the Bulgarian banking system after Unicredit Bulbank and DSK. The capital adequacy of the bank at December 31, 2016 was 15.41%, the ratio of income and expenses amounted to 42.04% and return on equity was 11.17%. At the meeting of shareholders questions about attracting a strategic partner were raised, which the Bank's management will discuss at the next meeting.
Source: Capital (27.03.2017)

UniCredit Bulbank with a Lifetime Achievement Award in support of SMEs UniCredit Bulbank was awarded for overall contribution in supporting of SMEs. The prize was awarded by the National Guarantee Fund (NGF) to the Bulgarian Development Bank. The prize is for UniCredit Bulbank’s participation in the agreement to ensure a portfolio of loans to finance Bulgarian micro, small and medium enterprises. The guaranteed portfolio of the bank is BGN 120 million, as the total limit of the guarantee scheme is BGN 250 million. The agreement’s purpose is the implementation of a guarantee scheme to provide the existing and new enterprises in Bulgaria with preferential terms on bank loans through a mechanism of risk sharing. The program is a follow-up of the NGF’s 2014 guarantee scheme, in which UniCredit Bulbank helped over 250 Bulgarian companies with a guaranteed portfolio of loans amounting to BGN 33 million.
Source: Capital (29.03.2017)

Bulgarian Economy to Grow 3.9% in 2017 - EBRD Experts In 2017 Bulgaria's economy will grow 3.9 per cent, according to the CEE Banking Outlook strategic analysis presented at the EBRD 2017 Annual Meeting held in Cyprus. However, in 2018 economic growth will decelerate to 3.6 per cent. Central and Eastern Europe (CEE) have a good economic environment, with GDP expected to grow by 3 per cent or over in most CEE countries in 2017 for the first time since the crisis of 2008-2009, according to the experts of the European Bank for Reconstruction and Development. The CEE banking sector is more lucrative than Western Europe's, the analysis says, adding that 2017 is the first year when the banking sector of all countries of the region have reported growth. Most CEE countries have a relatively high digitization rate and are gradually catching up with the EU's top achievers. For now, Bulgaria is considerably lagging behind in the use of digital services. Less than 10 per cent of consumers use Internet banking, and their share is expected to increase. The experts also note a decrease in bad loans and the cost of risk. The banks' profits in the region increased substantially in 2016 due to one-off factors. This year the banks are expected to post smaller profits, and 2018 will bring little change. The macroeconomic scenario for Bulgaria shows a better medium-term outlook for the economy after the March parliamentary elections, according to the experts. The election results open an opportunity for implementing policies supporting economic growth to a larger extent.
Source: Capital (11.05.2017)

Government to End Privatization of State-owned Companies The government on Wednesday tasked the Finance Ministry with drafting a bill to ban the privatization of state-owned companies and their subsidiaries. Any auction of autonomous parts will be endorsed by the National Assembly on a proposal by the government. Speaking after Wednesday's cabinet meeting, Economy Mnister Emil Karanikolov said that all ongoing privatization procedures for state-owned companies will be terminated immediately. He specified that privatization also refers to the sale of private public properties by regional governors. The transactions will be agreed with the Finance Minister which is spelled out in the current legislation and the privatization of autonomous parts will be banned. Karanikolov said that analyses of the Privatization and Post-privatization Control Agency have shown that 98 per cent of the companies outside the no-privatization list have been privatized. There has been no investor interest in remaining companies, while the companies in the no-privatization list are strategic to the country. Karanikolov recalled that the privatization process began in 1994-95 as the only means of denationalization. In 1996-97 legislation introduced concessions and other forms of private public partnerships. The Ministers said that Bulgaria's privatization potential has been exhausted. The companies which have survived for more than 20 years will continue to develop with some even posting profits.
Source: investor.bg (11.05.2017)

Belgian KBC paid EUR 610 million for UBB The biggest bank transaction in Bulgaria has been completed: on 13 June, Belgian KBC paid EUR 610 million for UBB to the Greek NBG, and on Wednesday the purchased bank will have a new management. The merger of UBB and Cibank will take place in the next half-year, so that the merged bank, which will be the third in the market in the country after UniCredit Bulbank and DSK Bank, will be operational before the beginning of 2018. KBC, the Belgian banking insurance group, acquired 99.91% of the shares of the fourth largest player in the Bulgarian banking sector - UBB, as well as the leasing companies Interlease, Interlease Auto, 60% of UBB Metlife and the subsidiary UBB Insurance Broker, UBB Asset Management and UBB Factoring. After the merger of the two banks, they will have combined assets of just over BGN 10 billion by the end of March 2017 and this will rank the bank in third place on the Bulgarian market.
Source: Capital (14.06.2017)

Bulgaria's Kamenitza sells former brewery site in Plovdiv Bulgarian brewer Kamenitza, part of U.S.-based Molson Coors Brewing Company, said it has sold 30,500 sq m of land in the central part of Plovdiv city to two local companies which plan to develop a mixed-use construction project there. The two firms, SI Investment and SI Development, plan to build an urban development that will comprise office and residential areas, a hotel, sports centre and retail outlets on the purchased site. Construction works on the project should start in 2018 and be completed in 2023. The project will open about 500 jobs. The plot of land in Bulgaria's second largest city used to be the site of a Kamenitza brewery. In 2015 the company decided to relocate production to its other brewery, in the city of Haskovo, some 90 km southeast of Plovdiv. Kamenitza will retain ownership of an adjacent 3,500 sq m plot of land on which it plans to build a multifunctional development comprising a craft beer microbrewery and a museum. Construction works on project, in which Kamenitza plans to invest EUR 2 million, will start in September and are expected to be completed in 2018.
Source: Other (01.09.2017)

Bulgaria's competition regulator said the notified acquisition of Bulgaria’s AP Retail I, owner of The Mall shopping centre in Sofia, by Balkan Retail, a subsidiary of UK-based investment company Hystead Limited, falls outside the scope of its regulatory competences. In July, Hystead Limited has reached an agreement to acquire AP Retail I for a total of EUR 156 million. The deal does not fulfil the minimum conditions concerning the two companies’ turnover in the country to require clearance from the Commission for Protection of Competition. Under Bulgarian competition law, concentration is subject to mandatory prior notification to the competition authority when the combined turnover of all companies participating in the concentration in Bulgaria in the preceding financial year exceeds BGN 25 million. The concentration must also fulfil one of the following two conditions: either the turnover in Bulgaria of each of at least two of the undertakings participating in the concentration during the preceding financial year should exceed BGN 3 million, or the turnover in Bulgaria of the undertaking – subject to acquisition should exceed BGN 3 million during the preceding fiscal year. Located in Sofia, The Mall covers 52,000 sq m, 99.7% of which occupied by the nearly 200 tenants.
Source: 24 chasa (21.09.2017)

9 Bulgarian companies enter the SEE TOP 100 of the largest companies in Southeastern Europe Bulgaria is ranked in the SEE TOP 100 of the largest companies in Southeast Europe with nine representatives. For the tenth consecutive year, the business information agency has produced the annual ranking based on total revenue of the companies in 2016. This year Bulgaria has two representatives less than last year. The best performer among Bulgarian companies is Lukoil Neftochim Bourgas AD, which ranks 5th on the list. Next, ranked 12th, is Aurubis Bulgaria AD. National Electricity Company EAD is 14th in the ranking. Lukoil Bulgaria EOOD took 16th place. The other five other companies in the ranking are: 45th place - Kaufland Bulgaria EOOD, 66th place - CEZ Elektro Bulgaria AD, 82nd place - ELD Express Logistics and Distribution EOOD, 90th place- Bulgargaz EAD and 100th - OMV Bulgaria EOOD.
Source: econ.bg (04.10.2017)

Unicredit: Growth in Bulgaria will be sustainable and balanced Sustainable and balanced economic growth for Bulgaria for this and next year is predicted by Unicredit's chief economist for Central and Eastern Europe (CEE). Expectations for this year are for a real growth of the GDP by 3.7%, and for 2018 – by 3.9%. The main drivers will be domestic consumption and the rise in building financed by EU funds. UniCredit’s forecast remains the highest at the moment, although Raiffeisenbank is close to it - 3.7% growth in the economy this and next year. The Finance Minister Vladislav Goranov commented in September at a meeting of the Budget and Finance Committee that the Ministry could improve its forecast for the year to 3.9-4% growth in the economy. At this stage, there are no macroeconomic imbalances, inflation is still under control at levels between 1-1.5%, following this indicator in the Eurozone, but the labor market tensions are rising.
Source: Capital (06.10.2017)

Salaries in Bulgaria are Increasing by 8-10% Per Year The salaries in Bulgaria are growing very fast, between 8-10% increase per year. However, they remain low compared to other EU countries. This is the comment of UniCredit Bank's chief economist, Lubomir Mitov, who presented the analysis of the bank Bulgaria, Europe and the World - Macroeconomic Review on Thursday. NSI data also show that labor costs in our country are growing - in the first and second quarters of 2017 the increases are by 10% compared to the previous year, reports Sega. Although most Bulgarians are very skeptical on the issue of raising income, the facts show that the remuneration in Bulgaria is not "distorted" but proportional to the scale of the economy. The share of net wages (after deduction of taxes and social security contributions) from gross domestic product is even above the EU average, according to Unicredit's analysis. We are similar to Sweden and Finland and we are ahead of Britain and France, Lyubomir Mitov said. The explanation is that in the Western countries income taxes are high and "eat" a large part of the wages, and here operates the low flat tax. Eurostat statistics also show that Bulgarians' incomes are the lowest in the EU, but that wages in our country are rising most rapidly in the last 20 years. Lately, however, the problem is that wages grow at a higher rate than productivity. The construction sector can once again become a locomotive for development - it has experienced the greatest collapse from the Economic crisis in 2009 but at the same time it has great potential, the economist explained. Thanks to EU funds, the sector is already growing, which is expected to continue next year. This means that construction companies will open new jobs, and competition for staff will lead to wage increases. In the past year, exports are a major engine for our economy, "but as a percentage of GDP is not as strong as other Eastern European countries," Mitov said. For Bulgaria in 2016, exports per capita of Bulgaria amounted to EUR 4209, while in Hungary it was EUR 10,577 and in the Czech Republic it exceeded EUR 13,300. "The reason is that our exports are still largely made up of goods with low added value," the expert explained.
Source: econ.bg (09.10.2017)

KBC-owned Bulgarian lenders UBB, CIBANK sign merger agreement Bulgaria’s CIBANK and United Bulgarian Bank (UBB), both subsidiaries of Belgium's KBC Group, have signed an agreement on October 18 under which UBB will absorb CIBANK, data from the Bulgarian commercial register showed. Under the terms of the agreement, CIBANK shares will be converted into shares in UBB at a ratio of 1 : 0.78419, CIBANK said in a filing to the country’s commercial register. The agreement is subject to approval by the shareholders of the two lenders. In June, KBC completed the acquisition of leasing company Interlease and a 99.91% stake in UBB from National Bank of Greece for a total consideration of 610 million euro ($707.4 million). Following the merger, UBB’s registered capital will be increased to 93.84 million levs from 75.96 million levs. UBB’s capital will be spread in 93.84 million shares with a nominal value of 1 lev each. KBC will hold 93.77 million shares of UBB representing a stake of 99.93%. At end-September, UBB was Bulgaria’s fifth largest lender by total assets, according to central bank data. UBB's total assets stood at 7.15 billion levs. CIBANK’s assets totalled 3.36 billion levs at end-September, making it the ninth largest lender. After UBB absorbs CIBANK, it will become Bulgaria’s third largest bank UniCredit Bulbank and DSK Bank.
Source: Capital (06.11.2017)

Bulgaria's UniCredit Bulbank sells NPLs to DCA Italian banking group UniCredit said on Tuesday its Bulgarian unit UniCredit Bulbank has sold a non-performing credit portfolio to Debt Collection Agency (DCA), part of Norway’s B2Holding group. The portfolio, which has a legal claim value of around 84 million euro ($97.3 million), consists of both secured and unsecured non-performing loans granted by UniCredit Bulbank to private individuals, SME's and corporate customers, UniCredit said in a statement. The sale is part of the overall UniCredit Group's on-going strategy to reduce non performing exposure. In January, UniCredit Bulbank sold a portfolio of NPLs with a legal claim value of 93 million euro to DCA.
Source: Capital (08.11.2017)

Three Bulgarian companies start their participation in UniCredit CEE Lounge Three Bulgarian companies start their participation in UniCredit CEE Lounge - an innovative initiative by UniCredit, which gives access to the program of the ELITE London Stock Exchange. ELITE's primary goal is to accelerate the business development of promising new companies. A total of 14 companies from Central and Eastern Europe join the ELITE UniCredit CEE Lounge. The Bulgarian companies selected for participation are: Euromaster, UniComs and Vinprom Karnobat. Representatives of five more countries will take part in the program - Croatia, Romania, Russia, Serbia and Turkey. ELITE is a unique platform that supports the development of the business model of small and medium-sized enterprises (SMEs). The purpose of UniCredit CEE Lounge is to prepare these companies for the next step in their development.
Source: Banker (24.11.2017)

Shareholders of Bulgaria’s UBB approve absorbing CIBANK Bulgaria’s United Bulgarian Bank (UBB), majority owned by Belgium's KBC Group, said on Wednesday its shareholders have approved a proposal to absorb CIBANK, a wholly-owned Bulgarian subsidiary of the KBC Group. UBB’s capital will be increased by 17.87 million levs ($10.8 million/9.1 million euro) after it absorbs CIBANK, UBB told SeeNews in an e-mailed statement. Currently, UBB’s capital stands at 75.96 million levs, according to data from the commercial register. The deal is still pending approval from Bulgaria’s central bank. CIBANK and UBB are expected to fully complete merging their processes by the end of 2018, the CEO of both banks and country manager for KBC, Petar Andronov, told SeeNews last month. In October, the two Bulgarian lenders signed an agreement under which UBB will absorb CIBANK. Under the terms of the agreement, CIBANK shares will be converted into shares in UBB at a ratio of 1:0.78419, CIBANK said in a filing to the country’s commercial register at the time. After absorbing CIBANK, UBB will become Bulgaria’s third largest bank by assets after UniCredit Bulbank and DSK Bank. In 2007, KBC Group acquired 75% of Cibank, and in 2010 increased its shareholding interest to 100%. In June 2017, KBC Group completed the acquisition of UBB and leasing company Interlease from National Bank of Greece for a total consideration of 610 million euro.
Source: Capital (07.12.2017)