The profit of the banking system in Bulgaria stood at 842 mln leva (430 mln euros) on 31 July 2008, which is 233 mln leva (38.2%) up from a year ago.

Total assets reached 66.9 bln leva (34.2 mln euros). This is 1.2 billion leva (1.8%) up compared to the preceding month and 18.4 billion leva (37.9%) up year-on-year, the Bulgarian National Bank said.

Two banks are responsible for nearly half of the monthly hike. Last month's increase is attributed to credits and advances financed by deposits and capital mainly. A decline in securities and cash is registered.

The five largest banks held 57.5% of the total assets of the banking system at the end of July, there is no change in their market share compared to June.

Loans and receivables (including financial leases) account for 79% of the system's balance figure.

Loans and advances are up 2.4% in July, the hikes are only on the corporate segment (2.9%) and retail expositions (3.7%). The portfolio of corporate loans and retail expositions is up 52.4% y/y.

Attracted funds, the main source of funding for the banking system, are up 1.6% in July, which is a similar growth pace to those of assets. The hike comes from institutions, other than lenders, (538 mln leva) and individuals and households (480 mln leva). Deposits are still the largest part of resources (36%).

The balance sheet aggregate total capital rose y 2.8% (197 million leva). Issued capital is up by 90 mln leva, as a result of shareholders' support in three lenders institutions. Total capital is u 38% y/y.