In August the total assets in the banking system rose by 2.2 billion leva (3.4%), reaching 69.1 billion leva at the end of the month, The Bulgarian National Bank said today.

The monthly hike is mainly attributed to small and medium-size banks. There is an increase in loans and advances, cash, and securities. Compared to 31 August 2007, assets in the banking sector have increased by 18.5 billion leva (36.6%).

The market share of the five largest credit institutions slightly decreased to 57.1%.

Loans and advances amounted to 54.5 billion leva, a monthly growth of 3.4%, on account of the increase in all portfolio segments. In August, the largest rise (in percentage and in absolute terms) is seen in the claims on credit institutions, mainly due to the active operations of several banks.

Loans to corporations increased by 2.4% and rank second in terms of monthly growth of loans and advances. Retail exposures registered a lower growth rate – 1.8% - conditioned by consumer loans dynamics. Compared to August 2007, the total amount of corporate loans and retail exposures evidenced a 49.1% growth. In the month, the impairment of loans from both portfolio segments increased by 2.5%.

In August the attracted funds increased by 3.3%, and their reported growth rate is similar to that of assets. The growth is mainly on account of the resources from credit institutions, which increased by 1034 million leva. The deposits of individuals and households increased by 563 million leva, and the resources from institutions other than credit ones – by 333 million leva. As of end-August, the deposits of the population remained as the largest source of funds with a 36% share in the total amount of attracted funds in the banking system.

In the month, the balance sheet aggregate total capital increased by 155 million leva (2.2%) as a result of the increase in the current year income. For a year, the item total capital increased by 37.3%.

For the eight months of 2008, the profit accumulated in the banking sector amounts to 994 million leva, i.e. by 250 million leva (33.6%) higher than the performance reported as of 31 August 2007.

The level of liquidity in the banking system at the end of August shows sufficient coverage of attracted resources.