At the end of 2020, the assets of Bulgarian American Credit Bank reached BGN 1,868,859 thousand, which is an increase by 11.86% compared to the end of 2019. 

Despite the difficult economic situation during the year marked by the COVID-19 pandemic, the Bank continues to expand its loan portfolio. The trend of increasing the share of loans to natural persons and diversified financing of corporate clients and SMEs has been maintained in recent years. The achieved increase by 13.37% for a one-year period exceeds twice the average growth of the banking market on this indicator (5.20%). The loans granted under the programs for supporting SMEs affected by COVID-19 also contribute to the good results.

The borrowed funds of individuals and businesses increased significantly in both segments, by 12.46%. For the period under review, the banking system recorded an average of 9.99% annual growth in borrowed funds.    

At the end of 2020, BACB reported a 5.45% increase in net interest income despite the narrow interest margins and low interest rates in the banking market. The result is impressive against the background of the average indicators (decrease by 3.52%) and is primarily due to the increase in the interest income by 2.12%, reaching BGN 47,705 million. An additional contribution to the good performance during the period under review is the decrease in the cost of financing. The decrease in interest expense on borrowed resources is by 16.27%, reaching BGN 5,997 million.

BACB successfully handled the changes in the market of fees and commissions, performing better than the market, which lost 6.11% of its revenues. BACB's net fee and commission income decreased by only 3.28% due to the expanding customer base and the transactions carried out through the digital channels, which the Bank is focused on. 

The uncertainty caused by the COVID pandemic is reflected in the increased impairment costs incurred by the entire banking system. These costs reduce the financial result, but act as a kind of a buffer and guarantee for the sustainable performance of BACB in the coming periods.

The net profit of the bank amounts to BGN 11,480 million after tax, with a reported one-time negative effect of renegotiated interest on loans for the period.

The capital position of BACB again maintains its positive dynamics and reports an increase of 6.46% compared to the end of 2019.

The full statements of BACB AD and the Management Report are available on the corporate website of the Bank at in "Investor Relations” section. 

BACB AD Financial Indicators - on a separate basis

BGN '000	Q4'19	Q4'20	delta %
Interest income	46 716	47 705	2.12%
Ineterest expence	-7 162	-5 997	16.27%
Net interest income	39 554	41 708	5.45%
Net fees income	9 954	9 628	-3.28%
Net profit	14 317	11 480	-19.82%
Loans (net)	1 019 486	1 155 757	13.37%
Deposits	1 414 565	1 600 209	13.12%
Total borrowed funds	1 456 823	1 638 340	12.46%
Total assets	1 670 726	1 868 859	11.86%
CET1	180 634	192 298	6.46%