Bulgarian Development Bank marks a 20% growth of its profit for the first half of 2019
The Bulgarian Development Bank Group reported a profit of BGN 18.3 million for the first six months of 2019. The increase is by 20% as compared to the same period of the preceding year and is the result of intensification of the institution’s credit operations.
After ending 2018 as the most successful year in its history, with the largest volume of borrowings from foreign credit institutions, BDB continues its outstanding business development in 2019 as well.
The bank's portfolio increased by 7% within the first six months. The gradual development of lending is combined with stringent compliance with regulatory requirements, maintaining high financial stability and sound credit risk management.
The quality of the loan portfolio remains high, as the proportion of exposures being overdue for over 90 days has fallen below 6%. Their coverage is by 55% impairment, which also forms part of the institution's conservative policy as regards the risks incurred.
Bulgarian Development Bank has the necessary potential to continue the active development of its lending activity, both to stimulate the activity of small and medium-sized enterprises and to attain the economic priorities of the government, including to support infrastructure projects of significance for the country.
The Bank finances its operations by negotiating the attraction of resources from foreign and international credit institutions, as well as investment funds. To date, BDB has 13 active contracts with 8 financial institutions, including the Council of Europe Development Bank (BRCE), the European Investment Bank (EIB), the German Creditanstalt für Wiederaufbau (KfW) and the Chinese Development Bank (CBD) as a record 1.5 billion euro contract was signed in 2018 with the latter.