Bulgarian banks generated EUR 490 million by March 31, marking a 7.7% increase from the previous year, according to the Bulgarian National Bank. The banking system’s balance-sheet equity reached EUR 15.1 billion, an increase of EUR 82 million, or 0.5%, compared to the end of December 2025. Impairment charges accrued 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.
For 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 stood 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).
At the end-March, total gross loans and advances reached 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, encompassing non-financial corporations, households, other financial corporations, and the general government sector, increased by EUR 2.6 billion, or 4%, to EUR 67.6 billion.
Loans to non-financial corporations rose by EUR 1 billion, or 3.5%, and to the general government sector by EUR 254 million, or 32.4%. Loans to households grew by EUR 1.2 billion, or 4.2%, including EUR 946 million secured by residential property. As of the end-March 2026, total deposits in the banking system were EUR 99.8 billion, up EUR 2.4 billion, or 2.5% from the end-February figures.
Household deposits increased by EUR 1 billion, or 1.8%, while deposits from credit institutions rose by EUR 950 million, or 10.7%. Deposits from the general government sector increased by EUR 494 million, or 26.7%, and from non-financial corporations by EUR 330 million, or 1.2%. Deposits from other financial corporations saw a decrease of EUR 390 million, or 15.5%.
Gross non-performing loans and advances at the end of March totaled EUR 2.2 billion, an increase of EUR 223 million (11.1%) from the end of December 2025.
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The 7.7% year-over-year profit increase indicates continued growth and stability within the Bulgarian banking sector.
What factors contributed to the 7.7% year-over-year profit increase for Bulgarian banks?