Bulgaria Banking System Overview 2025
STRONG LENDING AND DEPOSIT GROWTH OFFSET BY MARGIN PRESSURE AND WEAKER SECURITIES GAINS Profitability: The banking sector reported net income of BGN 3.6bn in 2025, down 1.8% YoY from the record 2024 level. Net interest income grew modestly by 1.3%, as portfolio expansion was largely offset by higher funding costs. Non-interest income supported profitability, with FX gains rising by BGN 283.3m and net fees and commissions income up by BGN 163.7m, though these were largely offset by a 73.4% YoY decline in gains from securities (-BGN 388.6m).
Lending activity: Gross loans (excluding loans to credit institutions) increased by BGN 16.6bn (+15.0% YoY), marking another record year. Growth was led by mortgages (+BGN 8.2bn, +29.8% YoY), further supporting real estate price dynamics, followed by corporate loans (+BGN 4.5bn, +8.6% YoY) and consumer loans (+BGN 2.9bn, +13.5% YoY).
Interest rates: Lending rates continued to decline across all segments. Mortgage rates reached a new historical low of 2.47% (-7 bps YoY), corporate rates fell to 4.28% (-43 bps YoY), and consumer loan rates eased to 8.90% (-10 bps YoY).
Asset quality: Asset quality remained robust, with the share of loans overdue by more than 90 days declining to a new all-time low of 1.76% at end-2025 (vs 1.95% a year earlier). In absolute terms, overdue loans increased marginally by BGN 86m YoY to BGN 2.2bn.
Deposits: Deposit growth remained exceptionally strong, supported by euro adoption effects. Customer deposits increased by BGN 24.1bn (+16.2% YoY), with households contributing BGN 18.9bn of the increase.
First Financial Brokerage House (FFBH) is a leading non-banking financial institution on the Bulgarian capital market. Founded in 1991, FFBH offers the complete spectrum of investment banking services spanning corporate finance, privatisation advisory, mergers and acquisitions, financial consulting, brokerage services, research & analysis and asset management.
FFBH provides its services mainly to major international banks and corporations seeking investment in Bulgaria. FFBH is not only local contractor and partner to its clients but also an information source and provider for all major news and events in the economic and political life of the country.
We are the main contact point for the large majority of foreign and local institutional investors in the Bulgarian equity market. FFBH is providing access to the Bulgarian Stock Exchange by either its highly experienced sales trading desk or by order routing across the Bloomberg network.
Additionally, FFBH is offering a range of tools, specifically tailored for the retail investor. Both domestic and international markets are only a click away, via electronic trading solutions. As a major advantage, our customers are able to benefit from the broad range of Analysis & Research products with premium quality, provided by our team of dedicated analysts.
Clients of our research products are most of the largest foreign and local institutional investors looking for opportunities in Bulgaria. More than 100 investment banks, investment funds and other institutional investors use our Equity research and Economic review on a regular basis. FFBH’s Morning Bulletin and Weekly Bulletin reach more than 300 clients over different countries and continents.
Our major Research and Analysis Services include:
- Semi-Annual Outlook of the Bulgarian economy and the domestic capital markets;
- Equity analyses of the biggest and/or most liquid companies listed on Bulgarian Stock Exchange - Sofia;
- Quarterly Bulgarian Real Estate sector and REITs overview;
- Quarterly Bulgarian Banking System overview;
- Quarterly macroeconomic overeview, with details on the major economic sectors, commentaries, and statistical indicators;
- Daily and Weekly bulletins, including an overview of the capital markets and the most important macroeconomic & corporate events.
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