Herewith we would like to inform you of the circumstances concerning Bulgarian-American Credit Bank AD (BACB) representing “inside information” within the meaning of art. 17 of Regulation (ЕU) No. 596/ 2014 on market abuse, art. 4 of the Measures against Market Abuse with Financial Instruments Act and art. 27 in connection with art. 28 of Ordinance No. 2 of 17.09.2003 of the Financial Supervision Commission, as follows:

 

On August 13, 2016 the Bulgarian National Bank published the individual results for every bank in Bulgaria from the conducted assets quality review and stress tests. The results from the assets quality review and stress tests are available on the BNB website – www.bnb.bg

Bulgarian-American Credit Bank AD has successfully passed the process of assessment of the quality of assets and stress tests. The results from the assessment of the quality of assets and stress scenarios show stability of the capital position and capital adequacy levels which are identical to the average ones for the banking system. 

Data confirms the adequacy of the bank’s business model, the responsible behavior and actions of shareholders, management and employees, ensuring sufficient capital buffers to secure unexpected losses arising from long-term negative shocks.

The comparatively low additional impairments after the review are evidence that the risk assessment and reporting methodologies applied by the bank are to large extent conservative and in line with the requirements of the national and European banking rules and practices.

BACB AD will continue to apply best practices of corporate governance and responsible market behavior. The bank will follow its policy aimed at careful growth of the loan portfolio in order to improve its profitability and maintain capital buffers above the regulatory set levels.