In January-November 2008 the Bulgarian banking sector made a profit of 1.318 billion leva, or 25.8 per cent more than this time in 2007, according to central bank figures quoted by the Monday issue of the "Dnevnik" daily. The profit is expected to add up to 1.5 billion leva for the whole of 2008.

The fluctuations in the amount of deposits in the banking system tend to flatten out and at the end of December 2008 deposits totaled 60.186 billion leva. The deposits came down by 831.8 million in October when clients' behavior was affected by the disturbances on the global financial markets and many individuals and companies chose to withdraw money from their deposits. A month later the amount of withdrawn deposits was much smaller (621.5 million leva).

On the backdrop of the global financial instability, such insignificant fluctuations in the amount of deposits indicate a high confidence in the banking system, according to the central bank.

At the end of November individual deposits totaled 21.8 billion leva and corporate deposits 18.7 billion leva.

Deposits by lending institutions grew by 3.5 per cent over a month, indicating that the foreign parent banks continue to support with resources their daughter banks in Bulgaria.

At the end of November 2008, the assets of the banking system stood at 68.8 billion leva, increasing by 13.6 billion - or 25 per cent - year-on-year.

The loans and upfront payments in January-November 2008 totaled 56.249 billion leva. The monthly growth on new loans to companies and households was fractional: 0.6 per cent (180.6 million) and 0.8 per cent (143.8 million leva), respectively. Housing mortgaged loans to individuals remain more dynamic than consumer credits. New mortgaged loans in November totaled 123.9 million leva against 19.845 million leva in consumer loans.

Source: BTA