2021 NET INCOME SURGED 73.8% YOY ON GROWTH OF NET F&C INCOME, LOWER CONTRIBUTIONS TO RESOLUTION FUNDS AND DEPOSIT GUARANTEE SCHEMES AND LOWER CREDIT PROVISIONS
• The banking system net income growth came to 73.8% YoY as net F&C income was 19.5% higher, the contributions to resolution funds and deposit guarantee schemes were 48.1% lower and the credit provisions were down by -32.2% YoY. 12-m trailing ROE of the banking system continued improving for a fourth consecutive quarter to 8.9% after reaching a 6-year bottom of 5.5% at end of 2020. • Gross loans of the banking system surged by 9.2% YoY as the growth accelerated for a fourth consecutive quarter. Loans growth was registered across all segments with the highest one in the mortgage segment (+15% YoY), followed by consumer segment (+11% YoY) and corporate loans (+5.9% YoY). The breakdown by banks reveals that 21 banks increased their portfolios compared to a year earlier, while 4 banks reduced them. • Interest rates continued to decline in 2021. The BGN denominated new corporate loans had 31bps lower average interest rate (2.60%) compared to 2020, the BGN mortgage loans had 17bps lower average interest rate (2.71%) and the BGN consumer loans registered 12bps lower average interest rate (8.08%). The new EUR denominated loans registered declines for consumer (3.33%) and mortgage (3.24%) loans and an increase of corporate (2.42%) loans. • The 90-days overdue ratio was down to its lowest reading ever (4.05% of gross loans) at the end-2021 compared to 4.78% at end-2020 despite the expiration of the moratorium on bank payments at end-March. The payments on 11.8% of the gross loan portfolio were still deferred under the moratorium terms.