Bulgarian Development Bank made an operating profit of BGN 19.5 million in the first quarter of 2022

Bulgarian Development Bank reported a net profit of BGN 19.5 million in the first quarter of the year.

As a result of the new stable management, the bank increases its efficiency and marks an increase in its direct lending activity, as in the first three months of 2022 alone it granted 81 new loans and made lease transactions totaling BGN 17.7 million to small and medium-sized enterprises. The loans are for the new loan products in support of a number of industries, including hotel management and restaurant-keeping, green energy investments, as well as the new programs for working capital without collateral.

The indirect support of BDB through the commercial banks in the country continues. In the first quarter of the Recovery Program, loans of over BGN 80 million were granted to nearly 300 micro-, small and medium-sized enterprises.

The financial results show an increase in the bank’s operating income, which is BGN 27.8 million compared to BGN 3.1 million for the same period in 2021. At the same time, administrative costs decreased by 26% (about BGN 2.2 million) compared to the first quarter of the previous year.

BDB continues to maintain a high level of liquidity. As of March 31, the liquidity coverage ratio (LCR) is 442.9%, which is significantly above the regulatory requirement of 100%.

Thus, in the first quarter of 2022 BDB remains well-capitalized and continues to be the bank with the highest level of adequacy of core tier 1 capital - 36.82%, again above the regulatory requirements.