BANKS REPORT BGN61.9MN PROFITS IN JANUARY
Bulgarian banks reported profits reaching BGN61.9MN for the first month of 2005. The amount exceeds by BGN20.4MN the profit reported at the end of January 2004.Total banks' revenues in January reached BGN200MN, of which BGN115MN came from interests on bank credits. For the same period of time the credit institutions reported expenses exceeding BGN120MN. The biggest sums, BGN26.3MN and BGN20.4MN, were spent for salaries and social insurance and external services respectively.The total assets of the banks decreased to BGN24.6BN, down from BGN24.9BN, in January, because of the withdrawal of nearly BGN560MN worth corporate deposits. In January 2005, the amount of these deposits in the banks fell from BGN16.73BN to BGN16.17BN. The withdrawal was partly compensated by the increased amount of deposits of financial institutions in Bulgarian banks (up from BGN2.8BN to BGN2.9BN) and the growth of the total net worth of Bulgarian credit institutions (from BGN2.7BN to BGN2.8BN).Although the sums attracted from individuals were lower, banks keep raising the total amount of credits. As of January 31, 2005, credits amounted to BGN13.7BN - BGN400MN above the amount reported in the beginning of the month. However, if the crediting growth remains accompanied by stagnation in the individual and corporate deposits, the bank system will be threatened by destabilisation.