The combined assets of DSK Growth, DSK Standard and DSK Balance mutual funds are expected to grow to BGN 80-100 million by the end of 2007, according to Petko Krastev CEO of DSK Asset Management. The combined net assets of the three funds grew by BGN 35.67 million in 2006. DSK Balance's net assets stood at BGN 16 million as at the end of 2006, up from the BGN 7.08 million assets registered a year earlier.
Source: Pari (24.01.2007)

Bulgaria’s average loan rate fell to 9.2 per cent in late ’06 versus 9.7 per cent a year earlier, shows data of the Bulgarian National Bank. By end-Sept ’06, First Investment Bank charged the highest loan rate of just over 11 per cent. The cost of borrowing in ’06 was comparatively high also at DSK Bank (10.6 per cent) and United Bulgarian Bank (10.2 per cent). Piraeus Bank is at the other end of the spectrum with an average rate of 4.2 per cent.
Source: Dnevnik (26.01.2007)

The assets managed by Bulgaria's mutual funds rose by a record 66 mln levs in January to 370 mln levs. The top 2 funds in terms of assets were unchanged in January with Advance Invest posting a 15% increase to a segment-leading 38.5 mln levs. It is followed to Raiffeisenbank (Bulgaria) Balanced which reported an identical gain to 30.36 mln levs. TBI Eurobond lost ground in January, boosting assets only by 75,000 levs to drop from the no.3 to the no.5 spot with 22 mln levs in total assets. It is leapfrogged by DSK Balance with 27 mln levs in assets and DSK Growth with 22.9 mln levs. Several high-risk outfits like Raiffeisenbank (Bulgaria) Shares also logged solid asset growth in January with serious influx also going to funds like Advance Eastern Europe and Status New Shares which invest abroad. At the same time, the assets of some low-risk vehicles like BenchMark Fund 1 and Raiffeisenbank (Bulgaria) Bonds fell slightly in January. The domestic mutual funds are expected to double their assets year-on-year in 2007.
Source: Dnevnik (07.02.2007)

The profit total of 3 locals banks -United Bulgarian Bank (UBB), Bulbank and DSK Bank, matched the combined result of the other 30 lenders operating in Bulgaria, shows data released by the central bank. The top 3 collectively turned in a profit of 406.5 mln levs or just over 50% of the sector's 807.6 mln lev full-year total. A total of 11 banks posted annual profits in excess of 15 mln levs. Of those 7 recorded a faster profit growth than the sector average of 38.2%. Postbank reported the biggest profit growth rate at a whopping 200% year-on-year. Biochim was another standout with more than double the 2005 profit result. Raiffeisenbank (Bulgaria) EAD, Bulgarian American Credit Bank (BACB), UBB, DSK Bank and SG Expressbank recorded double-digit profit growth in excess of the sector average. Profits at Bulbank and Economic and Investment Bank fell. In the first case, the correction was technical. BACB is once again the only lender classified by the central bank in the mid-to-small-sized group to make the top 10 of the biggest profit-makers. It is no.8 with a 40% profit growth. Piraeus Bank and First Investment Bank posted growth rates slower than the sector average.
Source: Dnevnik (08.02.2007)

Bank assets up 28% Y/Y in 2006 The combined assets of the 32 Bulgarian banks stood at BGN 42.2 billion as at the end of 2006, up 28% year on year, data of the Bulgarian National Bank showed. DSK Bank managed BGN 6 billion assets, accounting for 14.6% of the assets in the Bulgarian banking system in 2006. Bulbank ranked second with BGN 4.2 billion assets. UBB and Raiffeisenbank Bulgaria managed BGN 3.9 billion assets each. DSK Bank posted BGN 186.7 million profit for 2006, which forms a quarter of the overall banking sector profit for the year. UBB ranked second with BGN 142.6 million profit for 2006. Bulbank posted the third highest profit BGN 77.39 million. The combined profit of the top three banks accounted for BGN 406.68 million of the overall BGN 807.56 million profit generated in the banking system for 2006.
Source: Pari (09.02.2007)

The assets of DSK Assets Management's mutual funds grew by BGN 9.48 million in January 2007. DSK Asset Management currently ranks second among the other asset management companies in terms of assets. The combined assets of DSK Standard, DSK Balance and DSK Growth mutual funds amounted to BGN 55.15 million as at the end of January. The market share of the three funds increased to 14.98%, up from 11.69% as at the end of 2006. DSK Balance's assets stood at BGN 26.7 million as at the end of January. The market share of the fund has increased by 2.12%, while its return for the last six months stood at 25.51%.
Source: Pari (12.02.2007)

A Mar 26 general meeting of shareholders will vote on a proposal to delist DZI Bank. It is not yet clear how many minority shareholders took up on the tender offer pitched by EFG Eurobank Holding. The buyback was triggered by legislative requirements after the Luxembourg-based company bought a majority stake in the Bulgarian bank.
Source: Dnevnik (12.02.2007)

The tax remittance of the Bulgarian banks has increased to BGN 142 mln in '06 versus BGN 101 mln a year ago. The sector posted a combined profit of close to BGN 1 bln last year. Bulbank, Biochim and Hebros Bank, part of UniCredit Group, United Bulgarian Bank and DSK Bank will pay 60 per cent of the tax total.
Source: Dnevnik (12.02.2007)

The local financial regulator Wed licensed asset management company Invest Fund Management which is 33 per cent-owned by Investbank and 57 per cent-owned by Festa Holding. Festa Holding is also the majority owner of Investbank. Invest Fund Management, the nation's 25th asset management company, plans to launch a conservative and an aggressive mutual fund which should start selling share units within a month. Investbank is the 5th local lender with a registered asset management unit after DSK Bank, Raiffeisenbank (Bulgaria), United Bulgarian Bank and Central Co-operative Bank.
Source: Dnevnik (15.02.2007)

Savings in 80% of Bulgaria household deposits barely into 3 figures Per capital deposit savings stood at EUR 950 by the end of 2006, shows data of the Bulgarian National Bank (BNB). Although the per capita household debt reading of EUR 650 recently cited by the BNB would suggest that borrowers have been saving enough to cover they debt repayments, a closer look at the data released Tuesday reveals that as many as 82 per cent of the deposits have an average balance of up to BGN 115. Some 40 per cent of the combined value of household deposits (close to BGN 6 bln) is distributed among 100,000 accounts. Many Bulgarians have more than one deposit as suggested by the overall number of deposit accounts (11 mln) versus a bankable population figure of around 6 mln. A total of 1.1 mln new deposit accounts were opened in 2006 with BGN 3 bln already credited to their balance. Most of those new savings - BGN 1.2 bln, were credited to deposits that already had a balance of at least BGN 50,000.
Source: Dnevnik (21.02.2007)

Nine Bulgarian banks are ready to grant BGN 50,000 start-up loan to enthusiastic Bulgarians, who want to launch a small business. Until now, the biggest start-up loan was BGN 30,000. The state guarantees part of the small business start-up loan and the interest is 6-8 percent. There is also a grace period. The loans will be available in a month's time at the offices of the United Bulgarian Bank, Hebros Bank, Eurobank, the Economic Investment Bank, Central Cooperative Bank, the State Insurance Institute Bank and the State Savings Bank. For a loan of BGN 25,000 an applicant is to guarantee the opening of one job, if s/he applies for more money they should create two jobs.
Source: Standart (23.02.2007)

10% of the Bulgarian bank treasuries plan to create subsidiaries for real estate trade according to analysis of Pari daily. Raiffeisen Bank started recently such a subsidiary called Raiffeisen Real Estates Ltd. The company will be doing brokerage services in the area of real estates, market analysis, estimation and management of real estates deals. 16% of Bulgarian banks already have real estate subsidiaries. Another 10% announced their plans to create such in the near future. Raiffeisen Bank is a leader in the area of financing construction works of commercial and housing buildings. Mediation in the area of real estates is a logical follow up according to the Executive Director, Momchil Andreev. The new company will offer not only interesting individualized solutions but also an entirely new integrated model of service. The Executive Director of Piraeus Bank – Bulgaria, Athanasios Katsopoulos, states that the bank tries to offer the full range of financial products and services to its clients and this is the reason for the start of a real estate subsidiary. According to Violina Marinova, CEO of DSK Bank, one of the profits from such real estate subsidiaries is the better management of banks’ own estates. At the same time the bankÿ get lower risk as far as the mortgage loans are concerned.
Source: Pari (23.02.2007)

DSK Bank is now offering shares in a couple of new mutual funds for foreign market investments, head of the DSK Bank Violeta Marinova announced yesterday. Clients can now get shares in ‘OTP Centraleuropean fund in shares’ and ‘OTP International fund in shares – UBS ‘fund of funds’. Speaking of ’06 profits, the first has posted 19.32% against 10.20% for the second. DSK BANK’s Hungarian parent – OTP, has developed both products as securities in the two vehicles are denominated in EUR. DSK charges EUR 2 for initial participation and 0.5% for buyout.
Source: Pari (28.02.2007)

The clients of the 6 Bulgarian banks participating in EBRD's residential energy efficiency project have been slow to take advantage of the EUR 50 mln on-lending scheme, representatives of the banks and of the project consultant, Britain's Nexant, told a seminar held in local ski resort Borovets. One of the factors holding back the program, complemented by grant funding from the Kozloduy International Decommissioning and Support Fund, is the decision of the lenders to pair up with a particular vendor of energy conservation equipment, said the experts. The scheme, which involves UBB, DSK Bank, Raiffeisenbank (Bulgaria) EAD, Postbank, ProCredit Bank and UniCredit, allows retail borrowers to redeem a fifth of the cost of the energy efficiency upgrade of their home. The energy efficiency credits extended by the 6 participant banks range from BGN 500 to BGN 20,000 with interest between 9.5 per cent and 12 per cent. The maturity of the credits ranges between 1 and 5 years. A total of 6,500 Bulgarian households have borrowed BGN 16.5 mln under the scheme to date.
Source: Dnevnik (12.03.2007)

MTG Dolphin, the Varna-based ship repair company, said it has launched a 50 m research vessel commissioned by Latvian company SJ Marine. MTG Dolphin is building a second vessel of this type for the same client which will be launched in May. The Bulgarian company, which started out as a pure-play ship repair operation, plans to focus its foray into shipbuilding on the market niche for specialty vessels. MTG Dolphin already has an order from Dutch VeKa Group for 2 river tanker hulls that will be fitted out in the Netherlands. The VeKa Group contract includes an order for a further 3 vessels that will be built entirely at the Varna shipyard. MTG Dolphin, the nation's first new shipyard in the past 30 years, operates on a 7.9 site on the banks of the Varna lake. The company employs 1,000 staff.
Source: Dnevnik (14.03.2007)

Companies hunt for bank loans abroad Three months after Bulgaria joined the EU, the capital costs in the country are as much as 20% higher in comparison to the other EU members. This stimulates Bulgarian companies to seek funding on the foreign capital markets. Annual interest rates on loans in Bulgaria range between 8 and 12%, while the figure stands at 6-6.5% in the EU, Valeri Atanassov, executive director of Soravia Bulgaria, told the Pari daily. The situation is unlikely to change over the next few years, according to Atanassov. Consultant Ventsislav Dimitrov shares the same opinion, who believes that the high cost of loans in Bulgaria is unjustified. Loans in the USA and Europe are extended for 30-year periods at an annual interest rate of 2-3%, while the rates in Bulgaria are two to three times higher, Dimitrov said. Each Bulgarian company may obtain debt financing from abroad as long as it comes up with a project on how the money will be spent, a manager of a large-scale Bulgarian company, who wished to remain anonymous, told the Pari daily. Most bankers, however, share the opposite opinion. Only larger Bulgarian companies may take advantage of this type of financing, according to Violina Marinova, CEO of DSK Bank. As regards to smaller companies, they will get more favourable lending conditions in Bulgaria, Marinova added. Bulgarian companies may also consider the possibility of listing on a large-scale European stock exchange. In order to do so, however, local companies will have to abide by very strict financial reporting rules, which is often a problem in Bulgaria, Marinova added. The cost of gaining recognition abroad sometimes exceeds the benefit of being granted access to better lending conditions, according to Bulbank CEO Levon Hampartsumyan. Bulgarian companies have raised funding from abroad so far and there will be ones willing to do so in the future, according to Teodor Marinov, executive director of Interlease. Provided the fact that equal lending conditions are offered, however, Bulgarian companies would choose local sources of funding and the number of those seeking financing from abroad is unlikely to increase significantly in the future, according to Marinov.
Source: Pari (21.03.2007)

The profit of United Bulgarian Bank (UBB) increased by 35% in 2006, year on year, reaching BGN 162 million. The group of National Bank of Greece (NBG) is growing very fast and UBB is a good example of that, the CEO of NBG, Yiannis Pehlivanidis, said. We expect to keep the rate of profit growth in 2007, he added. Half of UBB's revenue in 2006 was due to the corporate sector, lending generated another 50%. The bank is second in retail banking in Bulgaria after DSK Bank.
Source: Pari (28.03.2007)

The management of OTP Bank Nyrt., the owner of Bulgaria's DSK Bank, is proposing that shareholders end limits to ownership and voting rights in eastern Europe's most profitable bank, making a takeover of the lender easier, news agency Bloomberg reported on March 29. Shareholders will vote at an April 27 meeting in Budapest whether to remove a clause from the company's charter limiting total foreign ownership at 50 per cent and the share of single non-Hungarian companies at 5 per cent, according to the proposal published on the Budapest Stock Exchange Web site yesterday. Management is also proposing to lift the maximum voting rights for a single shareholder to 25 per cent from 10 per cent. Should a stockholder hold more than 10 per cent, that limit would be 33 per cent. 'The probability has definitely increased' for a takeover, said Zoltan Varadi, who helps manage the equivalent of USD 20 mln at east European stocks at Raiffeisen Asset Management in Budapest. 'I don't think this will happen in the near term, but I expect that it will provide good support for the stock price.' OTP's largest shareholder is the Bank of New York Co., which holds a 28.3 per cent stake as a depository. The Hungarian lender has 6.6 per cent in treasury shares and Merrill Lynch & Co. holds 3.1 per cent of the company, Bloomberg data shows. Mikhail Rahimkulov, a former executive of Russia's OAO Gazprom and now Hungary's richest man, in September said he held 5.3 per cent in OTP.
Source: Dnevnik (30.03.2007)

Another 8 EU-registered banks have notified Bulgaria's banking supervisor of their interest in the local market. That brings to 37 the number of EU-based lenders that have notified Bulgaria's central bank of their likely plans to start doing business in the EU newcomer DEPFA Deutsche Pfandbriefbank, MKB Bank Nyrt, Credit Suisse International UK, Euler Hermes SFAC Credit, Hypo Alpe-Adria Bank AG, Raiffeizen Zentralbank Osterreich AG, Kommunalkredit International Bank Ltd. and Compagnie Generale D’Affacturage are the latest entries on the list of notifications received by the Bulgarian central bank. The list already features heavyweights like ABN AMRO, Credit Suisse (Luxembourg) S.A., JP Morgan Europe, Merrill Lynch International Bank and Erste Bank AG. Bulgaria's January 1 EU entry facilitated the arrival of new players on the banking market. All previous licensing requirements have been replaced with a notification procedure based on the EU lenders' common passport.
Source: Dnevnik (02.04.2007)

8 banks from EU member states have informed the Bank Supervision department in BNB of their intentions to get on the local market in Bulgaria. Eight banks submitted their applications in the last couple of days. Those are the German DEPFA Deutsche Pfandbriefbank AG), the Hungarian MKB, owner of Unionbank, Credit Suisse International, the Austrian Hypo Alpe Adria Bank, the French banks EULER HERMES SFAC and Compagnie Generale D'Affacturage, the Austrian Raiffeisen Zentralbank and Kommunalkredit International Bank from Cyprus. After Bulgaria's accession to the EU all financial institutions licensed to do business in the Union are also allowed to operate in Bulgaria by only informing the BNB in advance. The BNB has already received applications both by some of the giant investment banks and by banks mainly orientated towards common clients. Some of them include JP Morgan, Merrill Lynch, Goldman Sachs, ABN Amro, Erste Bank, Royal Bank of Scotland, Citibank International, Deutsche Bank, West LB, Hungary's OTP Bank, owner of DSK Bank. The arrival of foreign banks in Bulgaria will inevitably bring changes that will be felt on the market this autumn at the earliest.
Source: Pari (02.04.2007)

DSK Bank has given away 80,000 credits to old age people as 57,000 are given to people between 60 and 70 years of age. 22,000 credits are given to old men between 70 and 80 years of age. DSK Bank has no age limit for crediting. The credit can be with a maximum size of BGN 30'000 with a repayment term of 8 years and 15,50% interest rate. EIBank and Procredit Bank offer special consumer credit for pensioners.
Source: Monitor (13.04.2007)

The Board of Directors of Central Depository will be changed almost fully on the general meeting of the shareholders, which is appointed for April 27. This was announced by sources, close to the organization’s activity. The intentions of the financial minister Plamen Oresharski and the manager of BNB Ivan Iskrov (the two institutions own 41.9 per cent of the depository) are the number of the members of the managing board to be decreased from seven to five. Their places will only keep Gergana Beremska, director of State treasure and duty Department in MF and Nikolina Micheva, director of Fiscal services Department in the Central bank. All other members – the executive director of UBB Stilyan Vatev, chairman of the Board of Directors of BSE-Sofia Viktor Papazov, Mariela Nenova from BNB and the executive director Yuliyan Dinkov, will be changed. On there places will come Kalinka Kirova – member of the Managing Board of Bulbank, the Corporate financing executive director of DSK Bank Nikolay Borisov and Lyubomir Hristov, who has been main economist of BNB, later he works in the World Bank and private companies. According to unofficial information, Hristov has been proposed by Viktor Papazov and Andrey Pramov and will probably be executive director.
Source: Banker (21.04.2007)

A BGN 71 mln shopping mall will be added to the gated Tsarigradski residential compound under construction in north-eastern Sofia. The company that will develop the mall project, Sofia Building Enterprise, Wednesday was granted a First Class Investor certificate by the local investment promotion authority. Sofia Building Enterprise, a subsidiary of construction firm Sofia Building Company which is developing the Tsarigradski housing community, is specially incorporated for the purposes of the mall project. The new shopping center is sited in proximity to the outlets of German retailer Metro and Austrian DIY chain Praktiker and to the locations of planned Carrefour and Turk Mall commercial developments. The Tsarigradski Mall development will have a footprint of 2.0 ha and a total built-up area of 105,000 sq m, including 35,000 sq m of lettable retail space. The office component of the mall will deliver 15,000 sq m of lettable premises. The construction of the mall, which will employ 1,200 staff after completion, should get underway in the fall and wrap in 2009. Sofia Building Enterprise provides 30 per cent of the project financing with the remainder coming from an unnamed bank. The mall site is part of the land initially designated for the development of the Tsarigradski residential compound. The tenants of the complex will move into their new homes this summer. The second section of the complex will be delivered in 2008 with all three sections expected to be completed by 2009, providing housing to 4,000 tenants. There are unsold apartment units only in Tsarigradski III with prices starting from 55o euro/sq m. Sofia Building Company is currently scouting for sites for residential construction in Sofia and along the Black Sea coastline.
Source: Dnevnik (26.04.2007)

The heated competition between Bulgaria's two leading managing companies continued in April. The difference between DSK Asset Management and Raiffeisen Asset Management widened to BGN 4.45 million but in terms of market share it was just 1.01%. DSK Asset Management's assets increased to BGN 72.14 million in April from BGN 64.06 million in March. Runner-up Raiffeisen Asset Management reported BGN 67.69 million assets in April, compared with BGN 64.06 million in March. The list of the top five managing companies remained unchanged. Karoll Capital Management was third with assets totalling BGN 61.02 million (up by BGN 2.38 million month on month). It was followed by Elana Mutual Funds and TBI Mutual Funds with BGN 53.89 million and BGN 43.81 million respectively. The first five companies managed BGN 298.56 million worth of assets, i.e. about half of the sector's assets, which reached BGN 439.23 million in April.
Source: Pari (17.05.2007)

The Bulgarian American Credit Bank (BACB) is the only Bulgarian enterprise included in the ranking of best managed companies in Central and Eastern Europe (CEE) compiled by international financial magazine Euromoney. BACB occupied the number three spot among the CEE companies with the most consistent strategy, trailing only behind Czech CEZ and Telefonica 2. BACB also ranked third in the banks and finance category of the survey. The bank is also second in terms of most transparent financial reports among all CEE companies. BACB also garnered 33% of the votes for best-managed company in Bulgaria. Chimimport was the second best-managed company in Bulgaria with 12% of the votes. Monbat, DSK bank and ProCredit shared the number three spot with 9.5% of the votes each.
Source: Pari (04.06.2007)

The local Postbank, owned by Greek EFG Eurobank, will hikes its capital by BGN 38.461 mln to BGN 246.177 mln, according to an advertisement in the Official Gazette. The hike proposal will be put to a vote at a July 19 general meeting of shareholders. The exercise is part of Postbank's merger with another EFG Eurobank-controlled local lender, DZI Bank. Postbank will issue 38.461 mln new shares with a nominal value of BGN 1 each which will be subscribed by DZI Bank shareholders. The Postbank shareholders are expected to approve the agreement for the post-merger transformation of the lender into EFG Eurobank Bulgaria. The operational merger of the two banks should be completed in the second quarter while the legal merger should wrap by October. EFG Eurobank owns Postbank since 1998 and last year paid BGN 429.1 mln to acquire DZI Bank. EFG Eurobank Bulgaria will be the nation's 4th largest lender in terms of assets behind Bulbank, DSK Bank and United Bulgarian Bank. The new lender will operate a combined network of over 280 branches.
Source: Dnevnik (06.06.2007)

DSK Bank, United Bulgarian Bank (UBB) and Postbank accounted for more than half of the household exposures of the local banking sector by the end of the first quarter, shows data released by the central bank. The three lenders have combined for BGN 4.95 bln in retail loans. The data was collated before the expected merger of the local lenders owned by Italy's UniCredit Group. DSK Bank, owned by Hungary's OTP, remains the biggest retail lender with a portfolio of BGN 2.6 bln by end-March, said the central bank. The lender's corporate loan portfolio is just over BGN 500 mln. Still it is enough to ensure DSK Bank's position as the nation's biggest lender overall. UBB, part of the NBG Group, and Postbank, owned by Greece's EFG Eurobank, follow in the no.2 and no.3 spots with 3.07 bln and BGN 2.136 bln in total loans. UBB has split its loan book evenly between the retail and corporate sector while Postbank has lent BGN 693 mln to retail clients. The loan portfolio of UniCredit-owned Bulbank is dominated by corporate exposures. The biggest corporate lender at end-March was Raiffeisenbank (Bulgaria) EAD with BGN 1.7 bln. The household loan total stood at close to BGN 9 bln in Q1, including BGN 5 bln in consumerloans and BGN 4 bln in mortgage loans. The banks have added over BGN 2.55 bln in household loans over the 12-month period ended March 31, up 40 per cent year-on-year.
Source: Dnevnik (13.06.2007)

Bulgaria's DSK Bank has received six awards from Finance Central Europe, the premier UK magazine. The financial institution has been named best bank in Southeastern Europe for 2007; best bank in Bulgaria 2007; best bank in Bulgarian by assets 2007; best bank in Bulgaria by capital 2007; and best bank in Bulgaria by gross profit 2007. For a second year CEO Violina Marinova has been named banker of the year in Bulgaria for 2007. There are two main reasons for our success: the bank's traditions and its dynamic development after the privatisation, Violina Marinova told the Pari daily.
Source: Pari (14.06.2007)

DSK Bank opened a couple of new offices downtown Sofia. The Orlov Most branch is perched on 24 San Stefano str. and the other is situated on the crossing of Graf Ignatiev blvd. and Vasil Levski blvd. The two new offices of DSK offer the whole spectrum of bank services and payments both for citizens and juridical persons.
Source: Sega (20.06.2007)

Postbank picked up Pari daily's Bank of the Year 2006 award, as well as the award for the most dynamically developing bank in Bulgaria at a ceremony held on Tuesday. DSK Bank won the award in the Market Share category. DSK Bank and Bulbank are the only banks that have won the award in this category since the ranking was established. The award for the most efficient bank in 2006 went to the Bulgarian American Credit Bank (BACB). The bank won the award for the fourth time in the last seven years. The votes of Pari daily's readers gave the Client's Bank award to First Investment Bank (FIBank). The financial institution also ranked second in the final Bank of the Year standing, trailing by a narrow margin to Postbank.
Source: Pari (04.07.2007)

The small and mid-sized enterprises with Bulgarian Industrial Chamber membership will be eligible to receive from the local DSK Bank loans for bridge, feasibility and other types of financing under a co-operation memorandum signed by the organisation and the lender. Initially, the financing that will be extended will be under the Competitiveness operative program. The projects will first be screened by the bank before being reviewed by the economy ministry. The ministry will sign in Sept framework agreements with a total of 5 local banks. The banks will loan-finance approved projects and once they are implemented the lenders will be reimbursed from the EU funds.
Source: Dnevnik (30.07.2007)

The Bulgarian banks have began chasing customers on a previously unfancied market segment that is showing solid potential. The local lenders are now trying to outdo each other with working capital loan programs tailored to the needs of agricultural producers. Farmers are encouraged to take advantage of the simplified application format where the size of the loan is determined as a percentage of their direct EU subsidy allocation and the only security required is a document certifying that allocation. The new loan products were unveiled after Tuesday's signing of an agreement between the Agriculture State Fund and 21 financial institutions ready to provide credits secured with future EU subsidy handouts. Other government institutions are also ready to jump on the band-wagon. The economy ministry has announced plans to sign up five major lenders to assess the bankability of projects seeking financing under the Competitiveness operative program. Registered farmers that have declared to the authorities the area of their arable land holdings are issued by the implementing agency a document certifying the authenticity of the land area data. The document specifies the size of the EU subsidy entitlement for the period December 2007-June 2008. Under the common agricultural policy, EU farmers stand to receive a direct subsidy of BGN 140.10 per hectare of arable land. The handout reaches 211 levs/ha for arable land in erosion areas and in areas at an altitude higher than 500 m with a gradient of more than 15 degrees. The arable land certificate is then used to register a special pledge on future EU subsidies, making the respective farmer eligible to take out a bank loan covering around 90 per cent of the EU aid. Among the banks already marketing loan programs to the local farmers are First Investment Bank (FIBank), United Bulgarian Bank (UBB), MKB Unionbank, DSK Bank and Investbank. The FIBank and Investbank loan programs cover 100 per cent of the anticipated subsidy. The coverage at MKB Unionbank is 90 per cent while at UBB it is up to 70 per cent. Market surveys indicate that around 20 per cent of local agricultural producers would be interested in this product, said UBB board member Christos Katsanis. Maria Miteva from MKB Unionbank said farmers are inquiring about the program on a daily basis. According to Milena Trifonova, institutions and Eurofunds director at UniCredit Bulbank, demand is expected to peak this fall and then next spring.
Source: Dnevnik (01.08.2007)

Bulgaria's five biggest lenders in terms of assets accounted for 56.5 per cent of the banking sector's assets total by end-June, shows data released by the Bulgarian National Bank. The uptick in asset concentration is mainly attributable to the recent merger of UniCredit-owned Bulbank, HVB Bank Biochim and Hebros Bank. The banking asset total rose BGN 2 bln in June alone and has added BGN 11.2 bln (31.2 per cent) over the past 12 months. Credits and receivables (including financial leasing receivables) increased to a 77 per cent share of total banking assets. Corporate and retail exposures increased 15 per cent in June and posted a 47 per cent 12-month growth. They made up 60 per cent of the banks' assets towards the end of June, a trend that increases credit risk, said the central bank. In response, the BNB will raise from September the minimum reserves that the commercial banks are required to keep with the central bank from 8 per cent to 12 per cent of their deposit base. The measure is aimed at slowing credit growth down to 35-40 per cent by the end of 2007 and to around 30 per cent in Q1 2008. The deposits of non-credit institutions gained 8 per cent in June to settle at BGN 32 bln. Household deposits added 5.5 per cent and accounted for 39 per cent of the deposit base total in late June. The H1 collective earnings of the sector jumped 40 per cent year-on-year to BGN 490 mln with UniCredit Bulbank as the top performer with BGN 112 mln in profits. In related news, the BNB said that the so called First Group of banks will be made up of the five largest lenders in terms of assets. All other banks will fall into the Second Group category while the local branches of foreign banks are classified as Third Group.
Source: Dnevnik (02.08.2007)

Banks' assets increase by BGN 5bn The assets of the banking system in Bulgaria have increased by some BGN 5 billion this year. A total of 25 banks and five branches currently manage more than BGN 47.2 billion. In June alone the total assets in the sector went up by BGN 2.3 billion. Banks' profit for the first half of 2007 rose by BGN 148 million, year on year, to nearly BGN 500 million. The central bank revised the ranking of banks by assets, with the first group now including five, not ten institutions. Raiffeisenbank displaced United Bulgarian Bank (UBB) from the third position by attracting BGN 710 million for the first half of 2007. UBB posted a BGN 480 million increase. The most essential rise in assets was registered by Piraeus Bank: BGN 825 million. UniCredit Bulbank and DSK Bank remain the two biggest banks.
Source: Pari (03.08.2007)

Overgas Inc., the Bulgarian gas supplier, has asked the local power regulator to include the city of Razlog in the permit area of its Bansko gas distribution licence. The request will be reviewed at a public meeting of the State Energy and Water Regulator Commission on August 9. Razlog is not included in any of the regions into which the country's territory was divided for the award of gas distribution licences. The Razlog municipal council has seconded Overgas' request. The gas supplier was recently granted a gas distribution licence for the territory of ski resort Bansko. The gasification of Bansko and Razlog would require the construction of an offshoot from the existing Greece-bound gas pipeline. Overgas plans to start pumping gas to business customers in Bansko from 2008. According to the business plan of the company, a total of 14.6 km of gas mains will be installed in 2008, reaching 49 business consumers and 180 households. Overgas will aim to plug in all public consumers and 47 per cent of the households in the Razlog and Bansko municipality within the first five years of the permit's lifespan. The Bansko gas distribution network should be fully in place by 2014. The Razlog gasification should get underway by 2009 and concluded in nine years' time. Overgas has submitted to the SEWRC a letter certifying that DSK Bank is ready to loan-finance the gasification of the two municipalities.
Source: Dnevnik (06.08.2007)

UniCredit Bulbank is on top of the chart of the top 10 Commercial banks in Bulgaria for the first six months of this year, Monitor reported. According to the data of the Bulgarian National Bank (BNB), DSK Bank is on second place, followed by Raiffeisenbank Bulgaria, United Bulgarian Bank (UBB) and First Investment Bank (FIB). Postbank, SG Expressbank, Economic and Investment Bank (EIB), Corporate Commercial bank, and Central Cooperative Bank complete the rest of the chart. The merger of UniCredit’s three banks – Bulbank, HVB Bank Biochim, and Hebros Bank into the united UniCredit Bulbank increased the concentration in the banking sector. Towards the end of June the five biggest banks form a total of 56.5% of the actives of the whole banking system, according to BNB’s data.The profit of Unicredit Bulbank as of the end of June 2007 is BGN 112.1 million. The redeemability of the actives is 1.46%. DSK Bank has a BGN 1.3 billion increase in actives, which makes around BGN 130 million per month. Towards the end of June the actives of DSK Bank reach BGN 2.2 billion. The bank has also increased its profit by almost 30% for the last year, and as of the end of June 2007 it is BGN 83.6 billion. UBB has lost its third place in total amount of actives, but nevertheless the balance of the credit institution has increased with more than BGN 1 billion. The analysis of BNB’s experts shows that the total amount of the actives in the banking system has continued its raise, as for the last month alone the actives have increased with BGN 2.327 billion (5.2%), and for the last year – with BGN 11.229 billion, which makes a 31.2% increase.
Source: Monitor (20.08.2007)

The local Raiffeisen Asset Management and DSK Asset Management funds have leapt to the top of the mutual asset rankings, according to data released by the companies themselves and the central bank. The Raiffeisen funds grabbed the lead midweek with just under 100 mln levs under their custody while the DSK group is close behind with 99.8 mln levs in assets. The two competitors have switched places since end-July when DSK was ahead with 97 mln versus 94 mln for Raiffeisen. Local financial groups Karoll Capital Management and Elana Fund Management placed third and fourth with 92 mln and 85 mln levs, respectively. Among the mid-sized asset management companies, TBI Asset Management leads Capman Asset Management with 59.3 mln versus 55.5 mln levs. The difference in asset holdings from company to company in the bottom-end of the top 10 is less than 10 mln levs. UBB Asset Management is nosing ahead with 32.8 mln levs in assets, followed by Standard Investment, BenchMark Asset Management and Status Capital with assets in the 22-28 mln lev range. The top 10 among the 20 active asset management companies control 90% of the market or around 600 mln levs in assets.
Source: Dnevnik (23.08.2007)

Raiffeisen Asset Management and DSK Asset Management topped the ranking of asset management companies with biggest assets in Bulgaria. The total assets of Raiffeisen Asset Management exceeded BGN 120 million as at August 22. The three funds operated by DSK Asset Management managed BGN 100.2 million. The number of investors in DSK Asset Management's funds amount to 3,400. The combined assets of Bulgarian mutual funds amounted to BGN 632,41 million or EUR 316.2 million for the first eight months of 2007. The figure is expected to reach BGN 800 million (EUR 400 million) by the end of the year. Bulgaria, however, trails considerably compared to the mutual fund industry in Slovakia, which has the less assets among EU countries (EUR 3.412 billion in the first quarter of 2007).
Source: Pari (24.08.2007)

The assets of the three mutual funds run by DSK Asset Management have reached the 100 mln lev benchmark. The biggest contributor is the high-risk DSK Growth with 52 mln levs in assets by Aug 22. The fund has returned 72.16% since its inception in Mar '06. The other two funds, DSK Standard and DSK Balance posted rates of return of 6.96% and 41.29% over the same period. DSK Asset Management is 66%-owned by DSK Bank and 34%-owned by OTP Fund Management, a unit of DSK Bank owner OTP Bank.
Source: Dnevnik (27.08.2007)

Synergon Holding is to launch the 2006 dividend distribution on September 15. The General meeting of the shareholders passed the pay out of gross dividend to the amount of BGN 0.0726 per share for the year 2006 (net dividend of BGN 0.067518 per share). All the shareholders having accounts opened at an investment intermediary will the paid the dividends by the respective investment intermediary, and the other shareholders – in the offices of DSK Bank throughout the country. The dividends shall be distributed by December 15.
Source: Monitor (04.09.2007)

Over 65 per cent of the extended loans interest rates increase The interest rates on some 65% of the loans extended by Bulgarian banks will increase after the nation's biggest banks announced or are about to announce an uptick in the cost of borrowing. The move is prompted by the repercussions from lending restriction measures enforced by the Bulgarian National Bank from the beginning of August. The aftermath was an average 0.5% rate increase by seven of the local banks with the biggest credit portfolios. Postbank and DZI Bank, both owned by Greece's EFG Eurobank, announced towards the end of last week a 0.5% increase in the base interest rate on loans in the local currency which is used as the baseline for the rates on the lenders' other credit products. UBB had already adjusted upwards by 0.5% the rate on its mortgage loans in the local currency while UniCredit Bulbank increased by 0.25-0.5% the rates on its various credit products. First Investment Bank has also announced a yet-to-be-specified rate increase. Raiffeisenbank (Bulgaria) EAD and DSK Bank could also announce similar moves on Monday. According to central bank data, the above-mentioned seven banks had combined credit exposures of 19.735 bln levs towards the end of July. Bulgaria's entire banking sector has released a total of 30.289 bln levs in household and corporate loans.
Source: Dnevnik (10.09.2007)

The Bulgarian mutual funds market is edging ever closer to the 1 bln lev benchmark, show Dnevnik estimates. The native schemes alone manage some 730 mln levs in assets, up 15% month-on-month in August. The overall market is well beyond the 900 mln lev mark if the assets of the non-native schemes are included in the estimate. The Pioneer funds alone logged sales of 170 mln levs in late August, said the local office of the company. SG Asset Management, OTP Fund Management and Raiffeisen Capital Management also distribute mutual fund shares in Bulgaria. Advance Invest, a Karoll company, topped the August market figures in terms of assets with a 9% share and a monthly return of just over 6%. Raiffeisen Asset Management is the leader among the asset management companies operating in Bulgaria. The Capman mutual funds posted the highest returns in August, show estimates based on net asset value per unit. The assets of the local mutual funds added 10% in January-August but still account for only 2% of household wealth.
Source: Dnevnik (10.09.2007)

Most Bulgarian banks have increased their interest rates on loans, but some of them are starting to increase the interest rates on deposits as well. The French-owned Societe Generale Expressbank announced yesterday that it would increase the interest rates on deposits. The interest rate will now be 6% with a fixed period of 2 years, which is a 1% increase. UniCredit Bulbank already decided to increase its interest rates on deposits, and it reached 5% for deposits with period of more than a year.
Source: Trud (11.09.2007)

The local DSK Bank Monday announced it is raising by 0.5% the interest rate on consumer, home purchase and mortgage loans extended to retail customers. The upward revision, which will apply only to existing loans, is triggered by the decision of the management to hike the base interest rate that is used to calculate the rates on all credit products of the bank. The consumer loan rate will go from 4.69% to 5.19% while the home purchase and mortgage rates will tick up from 3.69% to 4.19%. There is no change in the overdraft credit rate. According to data of the central bank, the Hungarian-owned DSK ranked as the nation's top household lender with 2.9 bln levs in retail loans by the end of June 2007. The DSK decision brings up to six the number of Bulgarian lenders that have raised the cost of borrowing lately in response to the central bank's tightening of lending rules.
Source: Dnevnik (11.09.2007)

With the development of the capital market in Bulgaria banks are becoming increasingly creative as regards to the launch of various products. Raiffeisenbank Bulgaria already offers a new savings product, dubbed MIX Deposit, which represents a combination between a standard deposit and an investment in a mutual fund. A total of 70% of the sum is deposited with the bank as a term deposit (for a period of six or 12 months), while the remaining 30% are invested in a mutual fund. The minimum amount for the opening of a MIX deposit is set at BGN 5,000. Deposit holders are allowed to choose between the Balanced and the Shares funds managed by Raiffeisen Asset Management. The balanced fund provided 30.26% return on an annual basis as at June 30. This is the second product of this type offered by the financial institution. The bank offered a structured deposit enabling investments on the currency markets a year ago. UniCredit Bulbank, United Bulgarian Bank, DSK Bank are the other banks offering similar products in Bulgaria.
Source: Pari (12.09.2007)

The local mutual fund market has cleared the 1 bln lev milestone and now accounts for 2.2% of Bulgaria's 2007 GDP forecast and 3.6% of bank deposits, shows the end-September monthly net asset value estimate. The native funds alone manage assets with a combined net value of around 870 mln levs. The foreign Pioneer, SGAM and Raiffeisen Capital Management funds contribute at least 230 mln levs to the asset total. There is no data on the sales of two OTP group funds marketed in Bulgaria by DSK Bank. The Pioneer Investments group funds had the market lead by end-September with around 150 mln levs in assets, followed by Raiffeisen Asset Management with 128 mln levs, DSK Asset Management with 127.7 mln levs, Karoll Capital Management with around 103 mln levs and Elana Fund Management with around 102 mln levs.
Source: Dnevnik (01.10.2007)

On October 1, 2007 a consortium of 11 members was established to work under the Microsoft’s European Union Grant Advisor (EUGA) Programme. The programme is aimed at making business efforts more efficient when applying for funding under the EU Structural Funds. Partners of the Programme are DSK Bank, Bulgarian Industrial Association, Bulgarian Chamber of Commerce and Industry, Bulgarian Telecommunication Company, State Agency for Information Technology and Communications, Confederation of Employers and Industrialists in Bulgaria, the Ministry of State Administration, Raiffeisenbank (Bulgaria), Unicredit Bulbank, the Foundation for Local Government Reform, and Microsoft Bulgaria.
Source: Capital market (02.10.2007)

Transhold Bulgaria Holding has sold 8.32% of the capital of Transcard to Investbank for BGN 582,063, the Bulgarian Stock Exchange (BSE) said. The bank has acquired a total of 582,063 shares in Transkard priced at BGN 1 each. Transcard's shareholders will have to decide at a general meeting in the end of October whether the company should become a co-debtor with its subsidiary Transcard Financial Services on a credit contract with DSK Bank. The deal is for a BGN 2 million revolving credit facility extended for a period of two years. If there is lack of quorum, the meeting will be rescheduled for November 14.
Source: Pari (05.10.2007)

Bulgaria's Corporate Commercial Bank posted BGN 18.7 million net profit for the first nine months of 2007, a nearly four-fold year on year increase. The increase may be put down to the higher revenue from interest, which more than doubled to BGN 25.89 million. The total assets of the bank stood at BGN 1.39 billion as at the end of September 2007. Corporate Commercial Bank will set up a management company, dubbed, CCB Asset Management, with BGN 300,000 capital. The bank will subscribe 51% of the capital of the new company. Management board members Orlin Russev and Ilian Zafirov will represent the bank in the new company. The stock of the bank appreciated by 0.89% to an average of BGN 106.77 per share on Monday.
Source: Pari (16.10.2007)

An Englishman hacked the server of UniCredit Bulbank in the Bulgarian town of Vratsa and drained about 50,000 levs in two hours. The money belongs to Vessko Kamenov, head of the local Beton ZV company. Thanks to the immediate reaction of the bank some of the 47,860 levs have been restored, but the bank won't compensate the businessman for the rest of the lost sum, because the institution shoulders no responsibility in cases of hackers' attacks. Kamenov noticed the deceit and immediately alarmed the police and the bank. UniCredit Bulbank blocked the transferred sums. The checkout showed that the transfers had been realized via a computer virus of the "Trojan Horse" type, which copied the information concerning access to the online users.
Source: Standart (17.10.2007)

A new financial thriller has been staged by Bulgaria's UniCredit Bulbank, starring CEO Levon Hampartsumyan as Justice. The other main role is played by Anton Tepavicharov, a client of the bank. In the beginning of 2006 Tepavicharov & Co. opened a special account with UniCredit Bulbank and received a EUR 200,000 transfer for consultancy services provided to 25.marts 1992 ApS. Eighteen months later, the holder of the account decided to transfer the amount to an account with DSK Bank. Tepavicharov submitted a payment order and was assured by the bank's employees that the money would be on his DSK account the following day. Now, as with all blockbusters, here comes the interesting part. The money was not transferred the following day, nor the day after that, nor to this very day. Tepavicharov sent a dozen of letters and emails to the bank and, on September 26, 2007, an official inquiry to Levon Hampartsumyan himself. It was not until October 18 that an official answer was received by N & B (as Tepavicharov & Co. was renamed in the meantime). The letter dismissed all claims of the company as 'ungrounded' and defended all actions of the bank's employees as compliant with the law and the contracts with N & B. UniCredit Bulbank explained the blocking of the money with notary objections filed by a third party against the execution of the contract. That third party warned UniCredit Bulbank that it would seek the whole amount in court. The Pari could not get in touch with Hampartsumyan before the newspaper went to press. Obviously, there is some argument. The problem is that the bank has assumed the role of a court of justice and decided that N & B is the defaulting party. According to experts, that is inadmissible.
Source: Pari (25.10.2007)

Former "Detmag" in the centre of Sofia (on the back of the Sheraton Hotel) is now owned by DSK Leasing. According to them subsidiary of DSK Bank "is a prestigious purchased property in downtown Sofia by the Municipal Bank. It was argued that the price paid for it is 9.95 million euros (19.46 million euro). Against this amount leasing company became owner of more than 1500 square. m total area. To say that it has paid about 6600 euros for square metre. The deal is extremely favorable for the Municipal Bank, which is in the process of selling 72% of their shares. The former shop "Detmag" was supply in the capital of the bank in 1996. At the end of 2006, according to members of the governing council of the institution he has led in its balance sheet with a value of 280 thousand euro. The Executive Director of Municipal Bank Lichev Alexander said the positive financial result of the transaction with the sale of the property is more than 18.8 million euro. It is good for the institution as the present premises of the former "Detmag" not used and do not bear any proceeds of the bank. The reason is that for years they have kept matters in restitution claims, which were only finally completed in the late summer of 2007. With profits from the transaction Municipal Bank will increase its capital and thus will grow and the price of 72% of its shares, which the Sofia municipality and its subsidiary companies sell. According to Alexander Lichev consortium "Arzhil, Kambourov, Tranzakta MurStivans Bulmar, which prepares the assessment of the institution knows that for sale and should take into account the outcome of it.
Source: Banker (12.11.2007)

The CEO of DSK Bank, Ms Doroteya Nikolova, was awarder the prestigious Hungarian prize Andrash Fai for he contribution to the success and development of DSK Bank. Two years ago the same prize was awarded to Ms Violina Marinova, Chairperson of the Managing Board and CEO of the bank. The prize is after the name of the founder of the savings practice in Hungary - Andrash Fai. OTP Bank introduced the award in 1984.
Source: Zastrahovatel (23.11.2007)

The Bulgarian financial regulator Wed licensed asset manager CCB Asset Management. It is 51%-owned by the local Corporate Commercial Bank. It is not clear what types of mutual funds will be incorporated by CCB Asset Management. UBB, DSK Bank, Raiffeisenbank and Investbank are the other local lenders active on the mutual fund market. The native collective investment schemes have so far accumulated just over 1 bln levs.
Source: Dnevnik (29.11.2007)

Romanian firms plan to move their business to Bulgaria, because of the better business climate in our country, Alexander Djoganov, head of the Small and Medium-sized Enterprises Directorate of DSK (State Savings Bank,) warned at a conference in the framework of the Finance for Everybody exhibition in Sofia's National Palace of Culture. This year the emphasis in on the banks' participation in European projects. The Bulgarian firms may well remain without European funds because of their unpreparedness to absorb them. According to Djoganov, only some eight to nine percent of the firms registered in Bulgaria have an ISO certificate. Another reason for the business' low potential is its poor informedness on the issues concerning the EU funds.
Source: Standart (30.11.2007)

Sparky Group, the majority owner of Sparky Eltos, said it will float on the local bourse up to 10% of the Lovech-based manufacturer of power tools in January 2008. The IPO prospectus has been submitted for review by the nation's financial regulator. Sofia International Securities will lead manage the offering with DSK Bank acting as co-manager. The operation will involve a book-building process.
Source: Dnevnik (30.11.2007)

The assets of managing companies in Bulgaria decreased in November, in line with the drop on the Bulgarian Stock Exchange. Funds lost BGN 61.96 million as their assets declined to BGN 906.521 million. Raiffeisen Asset Management and DSK Asset Management topped Pari daily's ranking of managing companies by assets. At the end of the November, the assets of the two companies stood at BGN 131.49 million and BGN 128.33 million, respectively. Raiffeisen's assets dropped by nearly BGN 14 million in November, month on month, which reduced the company's market share by 0.52% to 14.50%. The assets managed by DSK shrunk by BGN 10.26 million, its market shares dropped to 14.16% at the end of November. Elana's funds ranked third with total assets amounting to BGN 116.49 million. The market share of Elana Mutual Funds rose by 1.24% in November to 12.85%. That was due to the launch of a new fund, Elana Money Market Fund, in October. The investment scheme has already raised assets worth BGN 5.660 million.
Source: Pari (06.12.2007)

Overgaz kapital JSC signed a contract with DSK Bank SPJSC for a credit line of BGN 5 mln, informed the company. The reason is the expansion of Overgaz kapital in credit products business. The fund will be used to finance individual and corporate clients.
Source: Monitor (06.12.2007)

Prime Property BG REIT, BSE code - TBIRE, has filed the following information with BSE-Sofia: On 17.12.2007, Prime Property BG REIT has signed an investment credit contract for the sum of Euro 1 million with CB DSK Bank, in order to finance the entire construction of a luxury residential building in Sofia, 60 Cherkovna St. as the credit will be repaid till 30.05.2009 from the incomes as per a preliminary contract for sale of the building to Cleves EOOD. Further, the credit is backed with a mortgage of the entire real estate and a registered pledge pursuant to the Registered Pledges Act of the receivables as per the preliminary contract.
Source: Banker (21.12.2007)