In the conditions of a continuing pandemic of COVID-19 and a complicated economic situation, Bulgarian American Credit Bank successfully ended the first quarter of 2021. As of 31 March 2021 the Bank's assets reached BGN 1,951,321 thousand. The figures unequivocally indicate growth of 21.67% compared with data from the first quarter of 2020. The growth for the banking system during the same period was 10.64%.

BACB continues to expand its loan portfolio by increasing the share of mortgage loans to natural persons and SMEs. The achieved increase by 11.56% for a one-year period exceeds twice the average growth of the banking market on this indicator (5.29%).

The results of deposits and total borrowed funds in the first quarter of 2021 are impressive. Savings of individuals and businesses increased by 23.71% in both segments. The data show almost double growth compared to that of the banking system, which recorded 13.16% annual growth in borrowed funds.

Due to the continuing trend of very low interest rates and narrow interest margins, the banking system reported a decrease in net interest income by an average of (-2.92%). BACB maintains its good performance on this indicator as well and reports only -0.53% decrease in net interest income.

Contribution to the good performance of the Bank during the period under review is the decrease in the cost of financing, which is reflected in the reduction of interest expenses on borrowed resources by -20.27%, reaching BGN 1,314 million.

As a result of the restrictive measures imposed in connection with the COVID-19 pandemic and its negative consequences for the entire banking system, in the first quarter of 2021 there was a decline in net fees and commissions income by -0.44%, whereby the average decrease for the banking market is by 4.33%.

The net profit of BACB amounts to BGN 3,572 million after tax, with a reported one-time negative effect of renegotiated interest on loans for the period. The Bank manages to keep its operating costs low, despite the significant increase in the number of customers and their transactions, due to the digital channels and technological innovations it implements.

The capital position of Bulgarian American Credit Bank maintains its stable level with parameters above the regulatory requirements during this difficult year as well. After the respective corporate and regulatory decisions, the capitalization of the profit for 2020 is expected to result in growth in this position for BACB as well.

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

BGN '000	Q1'20	Q1'21	delta %
Interest income	12 055	11 666	-3.23%
Ineterest expence	-1 648	-1 314	-20.27%
Net interest income	10 407	10 352	-0.53%
Net fees income	2 296	2 286	-0.44%
Net profit	3 838	3 572	-6.93%
Loans (net)	1 052 916	1 174 669	11.56%
Deposits	1 342 279	1 674 476	24.75%
Total borrowed funds	1 384 540	1 712 754	23.71%
Total assets/Общо активи	1 603 802	1 951 321	21.67%
CET1	193 862	192 398	-0.76%