Bulgarian banks generated EUR 490 million by March 31, representing a 7.7% increase from the previous year, according to the Bulgarian National Bank on Thursday. The banking system’s balance-sheet equity reached EUR 15.1 billion, an increase of EUR 82 million, or 0.5%, from the end of December 2025. Impairment charges on financial assets not carried at fair value through profit or loss totaled EUR 149 million at the end of March, up from EUR 64 million in the corresponding period of 2025.
In the first quarter of 2026, the banking system’s total assets amounted to EUR 119.5 billion, a rise of EUR 3.4 billion, or 0.3%. The liquidity coverage ratio at the end of March was 278.6% (compared to 280.6% at the end of December 2025). The liquidity buffer was recorded at EUR 35.9 billion, while net outflows were EUR 12.9 billion (compared to a liquidity buffer of EUR 35.1 billion and net outflows of EUR 12.5 billion as of December 31).
As of the end of March, total gross loans and advances stood at EUR 79.3 billion, an increase of EUR 5.2 billion, or 7%, month-on-month. Claims on lending institutions rose by EUR 2.6 billion, or 29.2%, to EUR 11.7 billion. The overall gross loan portfolio increased by EUR 2.6 billion, or 4%, to EUR 67.6 billion.
Loan increases were noted across sectors: non-financial corporations saw a rise of EUR 1 billion, or 3.5%; the general government sector increased by EUR 254 million, or 32.4%; households rose by EUR 1.2 billion, or 4.2%, including EUR 946 million in residential property-secured loans; and other financial corporations saw a rise of EUR 60 million, or 1.2%. At the end of March 2026, total deposits were EUR 99.8 billion, up EUR 2.4 billion, or 2.5%, from the end of February. Household deposits increased by EUR 1 billion, or 1.8%, and credit institution deposits rose by EUR 950 million, or 10.7%.
Government sector deposits grew by EUR 494 million, or 26.7%, while non-financial corporation deposits increased by EUR 330 million, or 1.2%. Deposits from other financial corporations decreased by EUR 390 million, or 15.5%. Gross non-performing loans and advances reached EUR 2.2 billion at the end of March, an increase of EUR 223 million (11.1%) from the end of December 2025.
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This profit increase suggests continued stability and growth within the Bulgarian banking sector.
What factors contributed to the 7.7% year-over-year profit increase for Bulgarian banks?