Capital Weekly ranks financial institutions in terms of stability, profitability and dynamics
Commercial lenders and Bulgarian Development Bank (BDB) provide financing for solar power plants for businesses. Also, there is a funding program with 200 million levs in grants under the Recovery Plan
Lower impairment costs, decreased contributions to guarantee funds and the credit moratorium boosted annual profit by 600 million levs
KBC Group is also owner of United Bulgarian Bank (UBB) and the merger of the two banks will create a third local giant of the caliber of UniCredit Bulbank and DSK
The sector as a whole performs well, but the champion is sunflower oil production
The pandemic practically froze the M&A market. Buyers are still mostly local faces
The Belgian group is acquiring Dutch-based NN’s Bulgarian businesses for 77.7 mln euro
Bulgarian banks remained profitable in the first three quarters of 2020 despite the coronavirus impact but with the expiry of the credit moratorium drawing nearer pressure will likely increase on profit margins in the coming months
DSK Bank is set to buy Societe Generale Expressbank for close to 1.0 billion levs, or 1.3 times its capital, vying for the top spot in the sector in terms of assets.
After the sector shrunk by four banks in the last five years, at least two more sales and a merger are expected before year-end.
Narrowing margins, a result of negative interest rates and stringent regulations, make smaller banks less and less profitable
THE SALE IS THE BIGGEST NPL DEAL SO FAR, AS BULGARIAN BANKS CONTINUE TO CLEAN THEIR BALANCE SHEETS
Despite legislation against such practices adopted in 2017 they continue uninterrupted
UniCredit Bulbank leads Capital’s TOP 10 Banks ranking for a second year in a row