Raiffeisenbank (Bulgaria) EAD reports BGN 134.5 million net profit after taxes for 2017. As of 31st of December 2017 the loan portfolio amounted to BGN 4.36 billion, which is a growth of nearly 8% in comparison to 2016. In 2017 the bank's assets reached approximately BGN 7 billion, recording an increase of 10.6% compared to the end of 2016.

"Bulgarian economy is developing well and we are taking advantage of the favorable environment. We are reporting growth in consumer and corporate lending above the market average, while at the same time we managed to further reduce the share of non-performing loans and to maintain an excellent quality of our new portfolio." – said Oliver Roegl, CEO of Raiffeisenbank, during the annual breakfast with media representatives in Sofia.

"In 2017 Bulgarian economy reported lower than expected growth because of the surprisingly low performance in the last quarter due to a very strong growth in imports that exports could not compensate for. Raiffeisen Research remains optimistic for the current year, with GDP expected to grow by 4.0% on an annual basis." – Roegl added.

11% growth in household lending

In 2017, Raiffeisenbank reported an 11% growth in its credit portfolio in the Private Individuals segment, amounting to BGN 1.77 billion as of December 31, 2017. New consumer and mortgage loans increased by more than 30% compared to 2016, with predominance of consumer lending.

Analysis of Raiffeisenbank's portfolio shows that in 2017 the average amount of consumer loans is amounted to BGN 15,000, and most often financing was used for current repairs (40%), purchase of a car (13%) and refinancing (25%). The average monthly installment is BGN 225, compared to BGN 260 in 2016. In 2017, however, the average term of paying off the loan increases by 1 year compared to 2016 and reaches 7 years.

According to the Bank's analysis, in 2017 the average amount of the mortgage loan was BGN 106,000, rising up with BGN 12,000 in comparison to 2016. The monthly installment remains at BGN 600, but the repayment term increases by 2 years to 21 years. The funding from the bank is mainly used for purchase of apartments (92%), and only 8% were for a house or a villa, but their share grew by 2 percentage points compared to results from 2016. Customers’ preferences for monolithic construction of the building remain – 71% of the homes purchased with a mortgage loan from Raiffeisenbank, compared to 69% in 2016. The growth of purchases of home, built after the year 2000, was more significant – 46% compared to 39% in 2016 due to the increased number of offers for a home in new building.

Growth also in business financing

In 2017, Raiffeisenbank's corporate lending increased by 7.3% compared to 2016 and amounted to BGN 1.98 billion.

An overview of the bank's portfolio as of December 31, 2017 shows that the main sectors of the economy which the bank has funded are Trade (37%), Production (31%) and Agriculture, Forestry and Fisheries (11%). The average amount that companies draw for an investment credit is 395,000 euro, and in turnover financing – 385,000 euro. Turnover credits in Raiffeisenbank's portfolio are 58%, compared to 42% for investment credits, but this share is equalized for newly granted credits in 2017.

Elevator Lab – Fintech accelerator for Bulgarian startups

Raiffeisenbank announces a challenge for Bulgarian fintech startups, which is conducted within the framework of Elevator Lab – the global fintech acceleration program of Raiffeisen Bank International. Since April companies will be able to apply with their innovative projects on the initiative’s website www.elevator-lab.com/bg, and the Bulgarian winner will be appointed in July. It will receive access to the global challenge for a competition with startups from all over the world.

"Digitalization is one of the focuses of the entire Raiffeisen Group. Following the successful first edition of Elevator Lab, this year's scope extends to Raiffeisen's subsidiary banks in several countries. New technologies are developing very fast and we should be preparing for the banking of the future, looking for the expertise and innovation of new companies. This will bring benefits to customers as well.” – said Oliver Roegl.