Nickolay Stoyanov

2 weeks ago | kinsights.capital.bg | Nickolay Stoyanov

The banking sector reported a record profit of BGN 3.7 billion for 2024, but 2023's peak of BGN 1.1 billion in dividends distributed would not fall. That, at least, is what the plans of the country's biggest financial institutions suggest before their annual shareholder meetings, where this is decided.

2 months ago | kinsights.capital.bg | Nickolay Stoyanov

By the end of February Bulgaria will formally request the preparation of extraordinary convergence reports by the European Commission (EC) and the European Central Bank (ECB). This was announced by the Finance Ministry on Monday after Minister Temenuzhka Petkova presented to the Eurogroup the country's progress on its path towards euro adoption.

2 months ago | kinsights.capital.bg | Nickolay Stoyanov

Expanding loan portfolios are the main driver of the 8% profit growth. Banks that are part of international groups now pay a 15% corporate tax rate, bringing total contributions for 2024 to 568 million levs, up from nearly 350 million levs in 2023. Intensifying race for market share, especially in corporate lending, could put pressure on profitability in 2025.

Jan 23, 2025 | kinsights.capital.bg | Nickolay Stoyanov

Bulgaria's inflation data indicates a slight acceleration, with the Harmonized Index of Consumer Prices (HICP) rising 2.1% year-on-year in December from 2.0% in November. However, the more crucial takeaway is that Bulgaria is now on the verge of meeting the last remaining Maastricht criterion for euro adoption, thanks to a steady decline in inflation throughout the year. This progress brings the country within reach of formally applying for eurozone membership from the start of 2026.

Nov 12, 2024 | kinsights.capital.bg | Nickolay Stoyanov

As of September 2024, banks' profits in Bulgaria show minimal annual growth, with return on assets and equity already declining as the interest rate driver weakens. Bank expenses, including salaries and provisions, continue to rise, with major players now also subject to an increased 15% tax rate. Despite this, lending continues to grow at double-digit rates, especially in the mortgage and consumer loan segments.