In a highly competitive environment, with a tendency for low interest rates and narrow margins, BACB reported a 10.95% increase in net interest income, which is almost four times higher than the average levels for the market (2.43%). This result is due both to an increase in interest income by 7.33% to BGN 22.389 million and to a decrease in interest expense on attracted resources by 7.93% to BGN 3.682 million.

As of June 30, 2019, the Bank's assets reached BGN 1 460 594 thousand leva. BACB maintains its tendency to expand its loan portfolio driven by diversified financing for corporate clients, SMEs and individuals. The achieved increase of 14.88% for a one year period exceeds twice the average growth of the banking market in the country, which is 7.19%. Crediting of individuals reached a 49% growth for the period.

Borrowed funds increased by 10.15% in both segments: corporate deposits and deposits of individuals and households, taking into account better results than those of the banking system, which records a 7.10% annual growth.

A significant increase was recorded in net fees and commission income by 33.01%, which serves as evidence of an expanding customer base and the number of transactions performed.
BACB's profit amounts to BGN 6.185 million before tax, with one-off effects of renegotiated interest rates on loans for the period and reported in the Bank's income in the subsequent periods, in accordance with the requirements of the applicable standards. Despite the significant increase in the number of customers and their transactions, the bank manages to keep operating costs low thanks to the technological innovations it introduced in customer service and process automation.
BACB's capital position is up by 6.92% compared to Q2 in 2018, due to the capitalization of the entire profit for 2018, which provides opportunities for business expansion and sustainable development of the bank.

BACB's full reports as well as management's report are available on the Bank's corporate website, in the Investor Relations section.

BACB AD Financial Indicators

BGN '000	Q2'19	Q2'18	delta %
Interest income	22 389	20 859	7.33%
Ineterest expence	-3 682	-3 999	-7.93%
Net interest income	18 707	16 860	10.95
Net fees income	4 174	3 138	33.01%
PBT	6 185	6 251	-1.06%
Loans (net)	936 730	815 422	14.88%
Deposits	1 206 511	1 088 681	10.82%
Total borrowed funds	1 244 777	1 130 085	10.15%
Total assets	1 460 594	1 311 033	11.41%
CET1	181 585	169 831	6.92%