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BEIS
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Press Digest
Press digest - year 2024
 | Eight banks are on the list of participants in this year's government securities auctions
The Bulgarian National Bank has announced a list of participants in the automated system for holding auctions and subscriptions for the exchange of government securities. It is already in force at the beginning of this year, the central bank specified. It includes Municipal Bank AD, First Investment Bank AD, United Bulgarian Bank AD, DSK Bank AD, Allianz Bank Bulgaria AD, Central Cooperative Bank AD, UniCredit Bulbank AD and "Eurobank AD BULGARIA. The system for conducting auctions for government securities was initially developed by BNB experts in 1991 as part of the electronic system for registration and servicing of trade in government securities (ESROT), after which it was repeatedly modernized and refined in accordance with changes in the emission policy of Ministry of Finance. In 2004, a new system for conducting auctions, known as ADCC, was implemented. It is built as a stand-alone system, ensuring fully automated processing of submitted orders for participation in the auction from entry to exit in compliance with the provisions of Ordinance No. 5 of the Ministry of Finance and the BNB on the terms and conditions for acquisition, registration, payment and trading of government securities . The interchangeable technical means used by ADSC for communication with the participants in the auctions for ADSC (SWIFT and WEB-based interface when applying a qualified electronic signature) comply with international procedures and standards and allow trouble-free inclusion at minimal costs of new users, regardless of their location. Participation in the auctions is through competitive bidding. By decision of the Ministry of Finance, participation in some auctions for the sale of government securities is also allowed with non-competitive orders. Submitted orders can be changed by the participants in the auction until the deadline for their receipt expires, after which they are irrevocable. The last message is considered valid. Ranked orders are approved by the Minister of Finance or a person designated by him. Based on the received approval, the auction is closed and the data about it is transmitted directly to ESROT through the purpose-built interface. Competitive orders are paid at the price stated in the relevant order (rule that applies to the so-called "multiple-price auction"), and non-competitive orders - at the weighted average price of the approved competitive orders. Source: Banker (03.01.2024) |
| | "Sopharma Imoti" REIT has repaid ahead of schedule the balance of a bank loan granted by "DSK Bank" AD in 2014. Repayment took place on January 3, 2024, and the due interest has also been paid. The loan agreement was concluded on July 29, 2014. The amount of the loan is EUR 22,619,338 million. Another loan from 2011 for the construction of Sopharma Business Towers was refinanced with the funds. At the time of signing the contract, an annual regular interest rate of 3,050 percentage points is foreseen, formed by three-month EURIBOR plus an agreed allowance of 2,850 percentage points. The regular repayment term of the loan is July 29, 2024. In the last year, the shares of "Sopharma Imoti" became cheaper by more than 7%, and the market capitalization is slightly below BGN 187.7 million. Source: investor.bg (05.01.2024) |
| | On 19.01.2024, "OTP Fund Management" Limited, Hungary, increased its shareholding in the capital of "DSK Asset Management" from 34% to 75%. After the change, the other shareholder in the company - DSK Bank - remains with a 25% stake in the capital. "OTP Fund Management" (OTP FM) is a management company that was established in 1993 and is part of the financial group of OTP Bank. Its main activity is related to portfolio management of investment and pension funds and individual client portfolios. OTP FM is the leader of the Hungarian asset management market with nearly 20% market share. As of the end of 2022, OTP FM manages assets with a total value of over 5.6 billion euros, part of which are 54 funds with a different investment profile and an asset value of over 4.6 billion euros. Source: Company information (23.01.2024) |
| | Minimart , 2023 . . . , . 40 30 10 . Minimart 2024 . 110 , , 150 , , , , , , . 50 130 ., , , . Minimart , - , , , , , , , , , . Source: Capital (08.02.2024) |
| | As of December 31, 2023, 23 banks operate in Bulgaria's banking sector, 6 of which are branches of foreign credit institutions. Total assets of the banking system as of December 31 last year. amounted to BGN 172.1 billion, marking an increase of 4.22% compared to September 30. The share of the five largest banks based on total assets in the banking system as of December 31 is 76.84 percent. United Bulgarian Bank AD remains in the leading position with assets in the amount of BGN 34.0 billion or 19.78% market share, marking a growth of 4.63% in assets compared to September 30, 2023. Bank DSK AD is in second position with a 19.05% market share and a growth in assets of 5.48% compared to the previous quarter. In third position is Unicredit Bulbank AD with an unchanged market share of 18.67% compared to the end of the previous quarter and a growth in assets of 4.21% compared to September 30. The fourth and fifth positions, unchanged compared to the end of the previous quarter, are occupied respectively by Eurobank Bulgaria AD and First Investment Bank AD. The net assets of the banks as of December 31, 2023 amounted to BGN 20.0 billion, marking an increase of 3.55% compared to September 30. Bank DSK AD remains in the leading position according to this indicator - as of December 31, its net assets have increased by 6.38% compared to September 30, 2023. A growth of 4.52% in net assets was registered by Unicredit Bulbank AD as of December 31 and remains in second place by this indicator. United Bulgarian Bank AD occupies the third position in terms of net assets as of December 31, reporting a growth of 3.84% compared to September 30, 2023. Eurobank Bulgaria AD continues to occupy the fourth position, reporting a growth in net assets of 4.40% compared to September 30. First Investment Bank AD remains in fifth position with a growth in net assets of 0.66% compared to September 30, 2023. The net profit of the banking system marked a significant growth of 64.35%, reaching BGN 3.4 billion for 2023, compared to BGN 2.1 billion for 2022. Bank DSK AD occupies the leading position with a profit of BGN 1.0 billion or a 29.44% share of the profits in the sector for the last year, reporting a growth of 77.53% compared to the previous year. Unicredit Bulbank AD is in second position in terms of profit share in the sector, namely 23.61%, reporting an increase of 73.15% and reaching BGN 807 million for 2023 compared to BGN 466 million for 2022. United Bulgarian Bank AD doubles its profit from the previous year, reaching BGN 472 million for 2023 or a growth of 211.43%, rising to the third position with a 13.81% share in the profits of the sector. Eurobank Bulgaria AD is in fourth position with a profit of BGN 308 million and a market share of 9.02% for 2023, registering an increase of 49.02% compared to 2022. First Investment Bank AD climbs to the fifth position with a profit of BGN 135 million, registering an increase of 68.70% compared to 2022. The return on assets (calculated on the basis of Net profit / Total assets) amounts to 1.99% in total for the banking system throughout 2023 compared to 1.34% for 2022. According to this indicator, Citibank Europe AD - Bulgaria Branch is in the leading position with 3.59%, marking an increase compared to the previous year, when the return on assets was 1.30 percent. TBI Bank EAD occupies the second position with a 3.58% return on assets for 2023 compared to 6.03% for 2022. Next positions are occupied by Varengold Bank AG, Sofia Branch with 3.33%, DSK Bank AD with 3.07% and Targovska Banka D AD, which is in fifth place with 2.66 percent. Return on equity (calculated on a Net Profit / Equity basis, with the ranking excluding foreign bank branches), increases to 16.72% for 2023, compared to 11.77% a year earlier. With the highest return on equity remains TBI Bank EAD with 22.76%, and in second place is DSK Bank AD with 22.56%, followed by Unicredit Bulbank AD with 22.03%, Targovska Banka D AD with 20.78% and International Asset Bank AD with 18.95 percent. The efficiency indicator (calculated on the basis of the ratio between administrative expenses and total net operating income) reports an improvement from 37.36% for 2022 to 31.80 percent. In the leading position according to this indicator for 2023 is Unicredit Bulbank AD with 23.10% compared to 29.06% for 2022. Bank DSK AD is in second position, reporting an improvement in efficiency from 28.03% for 2022 to 24.37 percent. Citibank Europe AD Bulgaria Branch climbs to third position, reporting an increase in efficiency from 38.19% in 2022 to 25.86% in 2023. Next come Investbank AD and Te-Je Ziraat Bankas - Sofia Branch in fourth and fifth position, respectively. Source: Banker (09.02.2024) |
| | At the end of December 2023, housing loans amounted to BGN 19.901 billion and grew by 20.5% on an annual basis
Three of the commercial banks in Bulgaria increased the loans provided to households by over BGN 1 billion in 2023. Two of the institutions officially finalized acquisition transactions during the year, which also had an impact on the growth of this indicator. Number 1 for last year is United Bulgarian Bank, which added 4.5 billion BGN of new loans. At the end of 2022, the loan portfolio to households of KBC Bank Bulgaria amounts to BGN 3.5 billion. Postbank also reports an increase of BGN 1.97 billion, of which BGN 925 million comes from the acquired BNP Paribas Personal Finance. DSK Bank is also in the top 3, adding BGN 1.58 billion in new loans from households, ranking ahead of UniCredit Bulbank and TBI Bank, which increased their portfolios by BGN 725 and 474 million, respectively. An increase of over BGN 100 million. is also reported at Allianz Bank Bulgaria (BGN 227 million), First Investment Bank (BGN 220 million) and Central Cooperative Bank (BGN 101 million). The Bulgarian-American Credit Bank (BGN 87.7 million) also remains slightly below this limit.
? Source: Darik Radio (13.02.2024) |
| | State hospitals melt debts with bank loans for 80 million BGN
Eight out of a total of 61 state hospitals have taken loans from banks worth more than BGN 80 million to repay their arrears, refinance old loans and consolidate liabilities, the Ministry of Health announced. Over the past two years, there has been a reduction in the liabilities of state hospitals. Overdue debts have halved: from BGN 103 million at the end of September 2021 to BGN 54.7 million at the end of September 2023, according to the latest data on the hospitals' financial indicators. The state hospitals that service loans to banks are: the former government hospital "Lozenets", the emergency hospital "Pirogov", the hospital "Sveta Anna" in Varna, the multi-specialty hospitals in Burgas, Vidin, Vratsa and Silistra and the National Specialized Hospital for Physical and Rehabilitation medicine. With the exception of two hospitals, all others have taken out loans from Commercial Bank DBank (formerly Demirbank). The bank is owned by the Turkish businessman Fuat G?ven, whom in 2021 GERB leader Boyko Borisov called "the DPS banker". The two hospitals with loans outside Dbank are "Lozenets" - with the Bulgarian Development Bank (BDB) and MBAL Vratsa - with the DSK bank. The largest is the loan to "Pirogov" hospital in the amount of BGN 34 million, drawn by Commercial Bank Dbank in December 2022 for a period of 180 months. The loan was taken out for debt consolidation - repayment of overdue debts and part of previous loans. He found out about him from an audit of the Ministry of Health in the medical facility, in which irregularities were found, because of which the Minister of Health Hristo Hinkov wanted to release the director of the hospital, Dr. Valentin Dimitrov. According to Hinkov, the loan cancels Pirogov's overdue debts, but puts the hospital at risk of financial losses in the future. The loan has a 24-month grace period, in which the hospital will initially pay BGN 51,000 per month, and after the end of the grace period, "Pirogov" will repay BGN 251,000 per month. "Lozenets" Hospital is also servicing a large loan of BGN 18.1 million, but to BBR. The contract was concluded at the end of 2020 and is also for a period of 180 months. In order to be able to service its loan, the government increased the capital of "Lozenets" by 15 million BGN at the end of 2022. The hospital became seriously indebted after a mega-expensive modernization for over 100 million BGN, for which the state withdrew its financial support and "Lozenets" remained with unpaid bills to companies. Unlike "Pirogov", which has reset its arrears, "Lozenets" as of September 30, 2023 has arrears worth BGN 6.4 million, which have increased by BGN 1.8 million compared to a year earlier. Source: mediapool.bg (28.02.2024) |
| | Four banks operating in our country, among the strongest banking brands in the world
The total value of the 500 strongest banking brands in the world reaches a record 1.44 trillion. dollars, nearly doubling from a decade ago, according to the latest report from leading brand valuation consultancy Brand Finance. ICBC (Industrial and Commercial Bank of China) retained its top position as the world's most valuable banking brand for the eighth year in a row, with its brand value increasing by 3% to $71.8 billion. The biggest banking brand in Europe remains the British HSBC, which moves up one place in the ranking - to the 11th position, with a valuation of 20 billion dollars. Of the banks with divisions in Bulgaria, the Belgian KBC - the owner of UBB in Bulgaria - is the highest ranked, which occupies 56th place, after the value of its brand increased by 13.7% - to 6.13 billion dollars. Italy's UniCredit, owner of Bulgaria's UniCredit Bulbank, moves from 111th to 89th place after its brand value rose 29.6% to $3.45 billion. The parent company of the Bulgarian DSK Bank - the Hungarian OTP Bank - ranks among the 20 banks in the ranking, whose value has increased the most over the last year in percentage terms. The market leader's brand in Hungary rose 58%, placing it 177th in the overall ranking after a jump of 46 places. British fintech company Revolut, which also offers banking services in Bulgaria, ranks 471st, moving up 10 places in the ranking compared to the previous year. Source: Darik Radio (14.03.2024) |
| | The Bulgarian Development Bank has a new member of the management. This is Teodora Pesheva, who is joining the Board of Directors of the institution. Pesheva led corporate banking at UBB and Commercial Bank of Greece (Emporiki Bank Bulgaria). For 10 years, she was also the head of the "Large Corporate Clients" department at DSK Bank. Her career also goes through Mazars Group - London and Deloitte Bulgaria. Teodora Pesheva has been working at BBR since April 2023, managing the activity in the segment of corporate clients. Source: Standart (27.03.2024) |
| | Banks earned BGN 527 million from interest on loans to the public during the quarter
For the last year up to March 31, the portfolios of banks in Bulgaria have added net 4.02 billion BGN mortgage loans and 2.16 billion BGN consumer loans, with which the liabilities of households now amount to over 41.2 billion BGN. After the acquisition of Raiffeisenbank, UBB became the largest bank in Bulgaria. The addition of the loan portfolio of the purchased institution allowed it to come out on top in this ranking as well, with BNB data showing that the United Bulgarian Bank added net BGN 2.9 billion housing and BGN 1.6 billion consumer loans. Over BGN 1 billion in net mortgage loans for the period was added only by DSK Bank (note: BGN 1.2 billion). UniCredit Bulbank (BGN 808 million) and Postbank (BGN 576 million) follow. More than BGN 100 million in new housing loans were provided by two more banks - Allianz Bank Bulgaria (BGN 148 million) and First Investment Bank (BGN 144 million). In terms of consumer loans, after UBB is Postbank, which acquired BNP Paribas Personal Finance. Over BGN 100 million in loans were also provided by DSK Bank (BGN 624 million) and TBI Bank (BGN 478 million), below this limit were Central Cooperative Bank (BGN 98 million) and Allianz Bank ( BGN 92 million). Banks received BGN 527 million in interest for loans granted to the population for the first three months of the year. Source: econ.bg (16.05.2024) |
| | A bank announced for public sale the olive processing factory in Blagoevgrad of the scandalous Greek businessman Ioannis Kozas, who was accused by his wife Stefka Terziyska of having ordered her murder. The building is in the Proevski farmstead area of ??Blagoevgrad and is on 2 levels with an area of ??1034 sq.m. and 275 sq.m. It is sold together with the land below it of 4097 sq.m. A private bailiff organizes its sale at a starting bid price of BGN 1,082,880 excluding VAT. The declared buyer owes VAT. The factory was mortgaged to DSK Bank 2 times in 2021 and in February 2023, and since this February it has been foreclosed. The company with which Ioannis and Stefka founded the olive business in 2007 is "Olympos-99" OOD. In 2018, around their divorce, Terziyska was excluded from management and her son Konstandinos Ioannis Kozas took her place. Source: blitz.bg (05.06.2024) |
| | The Bulgarian banking sector first quarter of 2024
As of March 31, 2024, 23 banks operate in the Bulgarian banking sector, 6 of which are branches of foreign credit institutions. The net profit of the banking system increased by 4.27%, reaching BGN 818 million for the first quarter of 2024, compared to BGN 784 million for the same period in 2023. DSK Bank AD occupies the leading position with a profit of BGN 253 million or a 30.97% share of profits in the sector for the first quarter of 2024, marking a significant increase in its profit of 35.64% compared to the first quarter of 2023. Unicredit Bulbank AD is in the second position in terms of profit share in the sector, namely 18.90%, reporting a significant drop of 40.00%, registering a profit of BGN 155 million for the first three months of 2024 compared to BGN 258 million for the same period last year. Eurobank Bulgaria AD registered a growth of 35.36% in its profit compared to the same period of 2023, reaching BGN 95 million and remaining in the third position with an 11.63% share in the profits of the sector. United Bulgarian Bank AD is in fourth position with a profit of BGN 92 million and a market share of 11.24% for the first quarter of 2024, while for the same period of 2023, before its merger with Raiffeisenbank (Bulgaria) EAD (renamed temporarily of KBC Bank Bulgaria EAD in the period of the merger), it is outside the ranking of the top 10 banks in terms of profit. Central Cooperative Bank AD climbs to the fifth position with a profit of BGN 29 million, registering an increase of 35.05% compared to the same period of 2023. Source: Banker (14.06.2024) |
| | The textile company "Mak" - Gabrovo pays a dividend of BGN 6.99 for 2023
A gross dividend of BGN 6.99247 per share from the net profit for 2023 will be paid by the textile company "Mak" AD - Gabrovo. A total of BGN 2,830,000 will be distributed as a dividend. The remainder of last year's net profit in the amount of BGN 3,480,065.83 will remain as retained earnings from previous years. The payment of the dividend will start on August 20 through "Central Depository" AD and "DSK Bank" EAD. The total amount of the textile company's distributable profit amounts to BGN 6,310,065.83. The main shareholder is the Gabrovo company "Duker" OOD, which directly controls 79.66% of the capital, and indirectly through the Gabrovo-based "Kyubi" EAD another 3.04% of the voting shares. Georgi Bizhev owns 7.16 percent. The rest of the papers are owned by smaller investors. No dividend was distributed from the net profit for 2022. Source: Banker (24.06.2024) |
| | The Romanian antimonopoly authority has approved the sale of the Hungarian OTP Bank's business in Romania to the largest local bank, Banka Transilvania. Also part of the deal are several other subsidiaries of OTP Bank in Romania, focused on leasing, asset management and others. The deal is worth EUR 347.5 million. The approval from the competition authority is the final step to finalize the deal and marks the exit of the Hungarian banking group from Romania after 20 years of activity there. The acquisition will increase the market share of the Cluj-based financial institution to 22.5%. In Romania, the Hungarian lender was the tenth largest bank with a share of 2.46%. It decided to exit it as part of its strategy to exit markets where it has a smaller share. Thus, OTP also left Slovakia in 2020, where it had less than a 2% share, and sold it to the Belgian KBC Group. In the region, in addition to Romania, OTP Bank also has business in Bulgaria, Serbia, Albania, Slovenia, Montenegro and Moldova. In Bulgaria, OTP Bank, through its DSK Bank, is among the three market leaders. In the last five years, it has made a major expansion in the region by acquiring Societe Generale Expressbank in Bulgaria, NKBM in Slovenia, the subsidiary of the Greek Alpha Bank in Albania, the business of the Slovenian Ilirika Group, which provides asset management services, in Serbia. Source: economic.bg (17.07.2024) |
| | As of June 30, 2024, 23 banks operate in Bulgaria's banking sector, 6 of which are branches of foreign credit institutions. On April 16, 2024, an agreement was concluded between the Bulgarian-American Credit Bank AD (BAKB) and Tokushukai Inc. for the purchase of 99.4% of the capital of Tokuda Bank AD by BAKB. Total assets of the banking system as of June 30, 2024 amounted to BGN 178.4 billion, marking an increase of 1.18% compared to March 31, 2024. The share of the five largest banks based on total assets in the banking system amounted to 76.18% as of June 30, 2024 United Bulgarian Bank AD remains in the leading position with assets in the amount of BGN 34.8 billion or 19.53% market share, marking a growth of 0.48% in assets compared to March 31, 2024. DSK Bank AD is in second position with 19.20% market share and growth in assets of 2.15% compared to the previous quarter. In third position is Unicredit Bulbank AD with a market share of 17.91% and a decrease in assets of 2.14% compared to March 31, 2024. The fourth and fifth positions, unchanged compared to March 31, 2024, are respectively occupied by Eurobank Bulgaria AD and First Investment Bank AD.
The banks' net assets as of June 30, 2024 amounted to BGN 21.1 billion, marking an increase of 2.19% compared to March 31, 2023. DSK Bank AD remains in the leading position in this indicator, and as of June 30, 2024 its net assets assets show a growth of 6.01% compared to March 31, 2024. A growth of 3.46% in net assets was registered by United Bulgarian Bank AD as of June 30, 2024, and it climbed to second place according to this indicator. In third place is Unicredit Bulbank AD, reporting a decrease of 5.49% compared to March 31, 2024. Eurobank Bulgaria AD continues to occupy fourth position, reporting a growth in net assets of 3.86% compared to March 31, 2024. First Investment Bank AD remains at fifth position with a growth in net assets of 1.51% compared to March 31, 2024.
The net interest income (calculated on the basis of Interest income - Interest expenses) as of the second quarter of 2024 amounted to BGN 2.73 billion, marking a growth of 20.36% compared to BGN 2.27 billion as of June 30 of the previous year. DSK Bank AD remains in the first position for the first half of 2024 with net interest income of BGN 628 million and a market share of 22.99%, reporting a growth in net interest income of 22.48% compared to the same period in 2023. United Bulgarian Bank AD occupies the second position with an income of BGN 399 million, equal to 14.59% of the total net interest income in the sector and a 13.21% growth compared to the bank's net interest income for the same period of the previous year. In third position in terms of net interest income for the first six months of 2024 is Unicredit Bulbank AD with net interest income in the amount of BGN 392 million, marking a growth of 20.33% compared to the same period in the previous year. Eurobank Bulgaria AD remains in fourth position with net interest income of BGN 383 million and 37.06% growth compared to June 30, 2023. First Investment Bank AD occupies the fifth position, recording a growth in income of 15.75% compared to June 30, 2023.
The net profit of the banking system increased by 7.14%, reaching BGN 1.81 billion for the first half of 2024, compared to BGN 1.69 billion for the same period in 2023. DSK Bank AD occupies the leading position with a profit of 503 million BGN or 27.82% share of the profits in the sector, reporting a growth of 12.44% compared to the same period of 2023. Unicredit Bulbank AD is in the second position in terms of profit share in the sector, namely 24.97%, reporting a growth of 0.37% and registering a profit of BGN 452 million for the first six months of 2024 compared to BGN 450 million for the same period in 2023. United Bulgarian Bank AD registered a growth of 7.44% in its profit for the first six months of 2024 .compared to the same period of 2023 and reaches BGN 232 million, retaining its third position with a 12.79% share in the sector's profits. Eurobank Bulgaria AD remains in fourth position with a profit of BGN 187 million and a market share of 10.31% for the first six months of 2024. Central Cooperative Bank AD climbs to fifth position with a profit of BGN 53 million for the first six months of 2024 , registering an increase of 27.96% compared to the same period of 2023.
The return on assets (calculated on the basis of Net profit / Total assets) amounts to 1.01% in total for the banking system for the first six months of 2024 compared to 1.05% for the same period of 2023. According to this indicator, Varengold Bank AG, Sofia Branch stands in the top position with 2.15%, marking an increase over the previous year when the return on assets was 0.79%. TJ Ziraat Bankas - Sofia Branch occupies the second position with 1.94% return on assets for the first six months of 2024 compared to 1.07% for the same period of 2023. TBI Bank EAD with 1.62%, Citibank Europe AD - Branch Bulgaria with 1.49% and Bank DSK AD, which occupies fifth place with 1.47%. Return on equity (calculated on the basis of Net profit / Equity, with the ranking excluding branches of foreign banks), decreased to 8.45% for the first half of 2024, compared to 8.95% for the same period in 2023. With the highest return of equity is Unicredit Bulbank AD with 12.45%, and in second place is DSK Bank AD with 11.4%, followed by International Asset Bank AD with 11.27%, Targovska Banka D AD with 11.24% and Procredit Bank (Bulgaria) EAD with 10.57 %.
The efficiency ratio (calculated on the basis of the ratio of administrative expenses to total net operating income) amounted to 30.57% for the second quarter of 2024 and remained almost unchanged compared to the same period in 2023, when its value was 30.59% . In the leading position according to this indicator for the second quarter of 2024 is Unicredit Bulbank AD with 19.56% compared to 21.83% for the same period in 2023. Te-J Ziraat Bankas - Sofia Branch is in second position, reporting an improvement in efficiency from 29.09 % for the second quarter of 2023 to 22.18% for the same period of the current year. DSK Bank AD is in third position, reporting a drop in efficiency from 23.47% in the second quarter of 2023 to 24.22% for the same period in 2024. Followed by Investbank AD and Allianz Bank Bulgaria AD in fourth and fifth positions, respectively. Source: Banker (21.08.2024) |
| | The dividend from "DSK Bank", "Unicredit Bulbank" and "BAKB" for 2023 is over BGN 1.2 billion
"DSK Bank", "UniCredit Bulbank" and "Bulgarian-American Credit Bank" (BACB) once again distributed a dividend to their shareholders from the net profit for 2023. As a result of the decisions of the general meetings, the three banks will pay their shareholders a total of BGN 1.20 billion for last year. The shareholders of DSK Bank AD are the most satisfied. A total of BGN 558,373,000.78 of the profit realized in 2023 will enter their portfolios. Part of the net profit for 2022, amounting to BGN 250,000,000 after taxes, was also distributed in the form of a dividend. The regular annual general meeting of "UniCredit Bulbank" AD distributed 65% of the profit for 2023, after taxation, as dividends to the shareholders for 2023, in proportion to the number of shares owned by them. It is about BGN 524.35 million, which is a record amount for the bank. The gross amount of the dividend is BGN 1.83 for one ordinary share with a nominal value of BGN 1. The payout started on May 31. The remaining BGN 282.3 million from the positive financial result will remain as retained earnings. "UniCredit Bulbank" allocates BGN 465,884,941.70 from the profit for 2022 for payment to the holders of such papers, in proportion to the number of shares owned by them. The gross amount is BGN 1.63 for one ordinary share with a nominal value of one BGN. "Bulgarian-American Credit Bank" AD - Sofia distributed an amount of BGN 19,753,050.40 from the net profit for 2023 as a dividend or BGN 0.80 per share. A decision to this effect was voted by the regular general meeting of shareholders of the credit institution. The remaining part of the net positive financial result, in the amount of BGN 35,146,141.76, is transferred to the "Reserve" fund. "Bulgarian-American Credit Bank" reported a net profit of BGN 54,899,192.16 last year. From the net profit for 2022, which is in the amount of BGN 43,663,589.79, a dividend was paid in the total amount of BGN 2,469,131.30, or a gross amount of BGN 0.10 per share. BAKB's entire 2021 after-tax profit was deposited into the Reserve Fund. The largest shareholder in the bank is "SIESAYEF" AD, which is controlled by Tsvetelina Borislavova - chairperson of the bank's Supervisory Board. This shareholder has a share of 45.68 percent of the capital. LTBI Holdings LLC holds 35.74 percent, and Tsvetelina Borislavova personally owns 9.98 percent. The rest of the voting papers are owned by smaller investors. Source: Banker (10.09.2024) |
| | Hikola Ba?alov, CEO of Fibank, was elected as a member of the Board of Directors of BOPIKA
At the regularly held General Meeting of the shareholders of the company for card payments "Borika" AD, Petya Dimitrova - Chief Executive Officer of Post Bank and Nedelcho Nedelchev - Executive Director of Municipal Bank were elected as new members of the Board of Directors. They join the other members of the Board of Directors: Radoslav Milenkov - Deputy Governor of the BNB, Miroslav Vichev - Chief Executive Officer of Borika, Tsvetanka Mincheva - UniCredit Bulbank, Peter Ruben - UBB, Tamash Hak-Kovach - DSK Bank, Nikola Kedev - CCB and Nikola Bakalov the CEO and Chairman of the Management Board of Fibank (First Investment Bank). Source: money.bg (19.09.2024) |
| | SUNOTEC and shareholders in "Eurohold" converted an industrial waste landfill into a hybrid RES park
The engineering, supply and construction company "Solaris Holding" AD - a joint venture of the Bulgarian-German SUNOTEC and the main shareholders in "Eurohold Bulgaria" AD, officially opened a hybrid plant for the production and storage of green energy in Pernik. The hybrid park includes a photovoltaic plant with a capacity of 32 MWp and an electricity storage facility with a capacity of 61 MWh. The park was built on an old landfill site of the local steel industry in compliance with the highest environmental standards. It is located on 310 acres, with 56,889 photovoltaic panels installed, which will save 15,847 tons of harmful emissions per year. The Pernik FPP can supply 10,200 households with energy (at an average annual consumption per household of 3,272 MWh). The project was financed by DSK Bank and the German Varengold bank AG. Green electricity storage batteries are from one of the world's leading manufacturers in this segment - Huawei. The produced electricity will be managed by the licensed trader "Electrohold Trade" EAD. The storage system allows the produced green energy to be used during peak hours of consumption and to be smoothly distributed according to demand so as not to overload the power system. It provides completely new opportunities for the realization of energy and allows the conclusion of long-term contracts for purchase and sale at a fixed price. "Solaris Holding" plans to build solar power with a capacity of 600 MW and electricity storage systems of 1000 MWh. Source: investor.bg (25.09.2024) |
| | The acceleration in mortgage lending in Bulgaria will calm down and portfolio growth will halve - from 24.6% in 2024 to 12.5% ??in 2025. This is the main scenario in the forecast of the Hungarian banking group OTP, which owns the local leader in the segment - DSK. The bank expects economic growth to accelerate from 2.3% in 2024 to 2.8% in 2025 and 3% in the next two years. Real wage growth will continue to be strong - above 5% annually until 2027, and the ECB will lower its interest rate to around 2%, which suggests that there will hardly be any pressure for housing loans in Bulgaria to become more expensive. OTP expect the new series of macroprudential measures of the BNB to yield results this time. The central bank introduced from October 1 ceilings for several key indicators in the granting of new housing loans. With the grown portfolios, even if the volumes of new lending are the same, the percentage change is lower. The forecast is that in 2026-2027 the growth rates will continue to decrease slightly, but will remain above 10%. In consumer loans, OTP also expects a slowdown, but much more smoothly. At the end of 2024, the growth will reach 15.2%, in 2025 it will decrease to 13.3% and in the following years it will continue to decrease by about 2 percentage points. In corporate lending, the bank expects activity to remain active and growth of around 9-9.5% to be maintained in the coming years. OTP considers Bulgaria to be a peculiar group of Mediterranean economies, which in 2024 will perform better than the other CEE countries in which the bank operates. According to OTP's forecast, the growth of consumption and investments in Bulgaria will remain unchanged, and the acceleration in GDP growth will come mainly from the awakening of external demand and, accordingly, exports. Inflation in the coming years is expected to remain slightly above 2%. And perhaps the most significant risk for realization is the forecast for the budget deficit, which the OTP expects to shrink to 2.6% of GDP in 2025 and to 2% in the next two years. Hungary and Bulgaria are the two countries with the fastest growing wages according to Eurostat data, raising concerns that this could affect the competitiveness of their economies. This could go on for several years without jeopardizing the states' external position, so it is not a looming danger, but rather a long-term risk. Source: Capital (21.10.2024) |
| | The largest companies in Bulgaria and the region in 2024
The 100 largest companies in South-Eastern Europe significantly reduce their revenues - from 223.9 billion euros last year to 198.4 billion euros this year, but through improved cost management, profits grow to 10.5 billion euros. This is clear from the new edition of the SEE Top 100 report. "Lukoil Neftohim Burgas" is ranked highest, in seventh position. It tops the ranking of the most dynamically developing companies in Southeast Europe for 2023, with an impressive revenue growth of 297.10%. The company quadrupled its revenue to 4.4 billion euros, consolidating its position as a key player in the region's energy sector, the report's authors wrote. In general, the energy sector in the region is characterized by the greatest dynamics. Thus, Kozloduy NPP stands out as the most successful Bulgarian company in the ranking of the most profitable companies in Southeastern Europe for 2023. The nuclear power plant occupies the prestigious sixth place in the top 10 most profitable companies with an earnings return of 21.06%, a significant improvement from 12% the previous year. However, there are also two Bulgarian companies in the negative part of the same ranking. Astra Bioplant ranks second among the most loss-making companies with a negative financial result of 75.1 million euros for 2023, a drastic change from the profit of 46 million euros in 2022. The company, which specializes in the production of biodiesel, explains the result with the unfavorable market conditions, with its revenues decreasing by 45% on an annual basis. Bulgargaz ranks seventh among loss-making companies with a loss of 26.8 million euros, although this is an improvement on the loss of 47.8 million euros the previous year. Regionally, Chinese-owned Serbian mining company Serbia Zijin Mining remains the most profitable with an impressive revenue return of 60.48%. Romanian energy companies also demonstrated a strong performance, with Hidroelectrica (49.87% return), Nuclearelectrica (31.33%) and Romgaz (28.52%) leading the rankings. However, the largest loss in the region was recorded by the oil company from our northern neighbor Rompetrol Rafinare (-110.6 million euros). The metallurgical sector, which has traditionally been strongly represented in the Bulgarian economy, demonstrated the highest revenue return (15%) among all sectors in the ranking, despite the challenges in the market. A key player in this sector is the German honey producer Aurubis, whose plant in Pirdop is an important industrial center for Bulgaria. It is the 11th largest company in Southeast Europe. Although the company reports a 13% drop in revenue and a halved profit, it is planning a large-scale investment program worth more than 400 million euros in its Bulgarian production. These investments are aimed at increasing capacity, improving sustainability and expanding production at the Pirdop mill. The year 2023 turned out to be extremely successful for the banking sector in Southeast Europe, SEENews states in its report. The region's 100 largest banks reported a combined net profit of 8.9 billion, significantly up from 5.9 billion in 2022 and above the pre-pandemic level of 4.673 billion in 2019. Total assets of the leading banks reached 467, 3 billion euros, compared to 428.9 billion euros a year earlier. In this context, the Bulgarian banking sector demonstrated a particularly strong performance, with the country taking second place in terms of number of financial institutions in the ranking with 16 banks, after Romania with 17 banks. The most notable achievement came from DSK, which is the leader in net profit among all banks in the region with 514.4 million euros - an increase of 68% compared to the previous year. The bank reported a 56% increase in net interest income, and its assets grew by 13% to 16.5 billion euros. OTP Group, of which DSK Bank is a part, leads the ranking of the best performing banks in Europe. The Bulgarian Development Bank had the largest fall in assets in the region - 9% to around 1.4 billion euros. This drops her from 59th to 71st. Romanian banks continue to dominate financially with assets worth 157.6 billion euros, which represents about a third of the total assets of the largest banks in the region. The following Bulgarian companies also enter the Top 100 ranking: NEK (#39); BA Glass Bulgaria EAD (No. 50); Kaufland Bulgaria EOOD (No. 63); Lidl Bulgaria EOOD (70); Saksa Ltd. (No. 83 - for the first time in the ranking). Source: money.bg (01.11.2024) |
| | For the first nine months of 2024, households in Bulgaria increased their bank deposits by BGN 5.35 billion, or an average of BGN 594 million per month. At the end of September, a record BGN 87.9 billion was held on deposit, compared to BGN 79 billion a year earlier. 71.07% of all household deposits are concentrated in the four largest banks. DSK Bank continues to be the leader in this indicator with BGN 21.9 billion, followed by United Bulgarian Bank (BGN 16.4 billion) and Unicredit Bulbank (BGN 13.7 billion). Post Bank is also in the group of banks in which deposits are over BGN 10 billion (note: BGN 10.4 billion), and the top 5 is completed by First Investment Bank (BGN 8.1 billion). More than BGN 100 million of new deposits were added in the above-mentioned five banks in the period from July 1 to September 30 of this year. They are the most in DSK Bank (BGN 456 million), followed by Post Bank (BGN 285 million) and UBB (BGN 169 million). A total of 88.74% of new deposits until September 30 were received in seven banks. The most serious sums are directed to DSK Bank (BGN 1.625 billion), and over BGN 826 million to Post Bank and United Bulgarian Bank, respectively. For the 14th consecutive month, the income from interest on savings is over BGN 10 million per month. The amount in September was 14.55 million BGN compared to 14.8 million BGN for the previous month and 15.6 million BGN for July - the highest value since May 2017. Since the beginning of 2024, households have received BGN 124.6 million in interest, compared to BGN 80.1 million for the same period in 2023. Source: Darik Radio (07.11.2024) |
| | The Bulgarian National Bank (BNB) has set the level of the buffer for the risk exposures of six systemically important banks in Bulgaria. By a decision of the BNB Governing Council of 31 October, the BNB has set the level of the buffer for six other systemically important institutions (OSIIs) as well as the level of the buffer on an individual, consolidated or individual and consolidated basis, applicable to the total value of the risk exposures, effective from 1 January 2025. According to the BNB's decision, the other systemically important institutions are "UniCredit Bulbank" (DSI buffer of 1 percent), "United Bulgarian Bank" (DSI buffer of 1 percent), "DSK Bank" (DSI buffer of 1 percent), "Eurobank Bulgaria" (DSI buffer of 0.75 percent), "First Investment Bank" (DSI buffer of 0.75 percent), "Invest Capital", "Central Cooperative Bank" (DSI buffer of 0.50 percent). Compared to last year's BNB decision on DSI, there is no change in either the institutions or the level of the buffer. Source: economy.bg (05.12.2024) |
| | "Sopharma Buildings" REIT concluded with "DSK Bank" AD a standard investment loan agreement in the amount of BGN 10,000,000, intended for partial financing, excluding VAT, of expenses related to the acquisition of a land plot in Sofia, 3 Kliment Ohridski Blvd. The money will be used to finance up to 100% of the expenses, excluding VAT, for the acquisition through construction and commissioning of "Residential buildings with shops, a kindergarten, underground garages and above-ground parking spaces - Stage I", on the same land plot. The investment loan will bear annual interest on regular principal, formed by a variable reference interest rate, representing a weighted average deposit index (WDI) plus an agreed premium of 4.9 percent. The loan has a maturity date of December 4, 2025, the principal grace period is until December 3, 2027, and the repayment deadline is December 4, 2027. The value of the weighted average deposit index for the month of December is 0.3 percent. "Sopharma Buildings" is a joint-stock company with a special investment purpose, investing in real estate. The largest shareholders in the company are "Sopharma" AD with a share of 31.47%, "Telekomplekt Invest" AD - 9.88%, Ognyan Donev - 11.91% and Ventsislav Stoev - 19.62 percent. "Sopharma Buildings" did not distribute a dividend for 2023, as the company ended last year with a loss of BGN 143,882. Source: Banker (05.12.2024) |