Sofia, August 1 (BTA) - During the first half of 2017, the banking sector saw a profit of 660 million leva, according to the central bank. It was 113 million leva (14.6 per cent) lower than this time last year.

The credit portfolio of banks increased in the second quarter and so did investments in securities.

A key source of financing were available resources in the form of cash balances at central banks and increased deposits. Despite the decrease in liquid assets during the second quarter, the liquid assets ratio remained high, at 36.92 per cent. In the structure of liquid assets, the item cash and cash balances with the BNB as of end-June had a share of 51.8 per cent (against 54.2 per cent as of end-March).

The banking system's assets in April - June 2017 grew by 0.1 per cent to 93 billion leva. Cash, cash balances at central banks and other demand deposits decreased by 1.6 billion leva (8.4 per cent) and its share in the total assets decreased to 18.6 per cent. At the same time, the share of the balance sheet total of loans and advances increased to 61.8 per cent.

The gross loan portfolio of the banking sector (excluding loans and advances to sectors central banks and credit institutions) in the second quarter grew by 1.4 per cent (771 million leva) registering a higher growth rate compared to the previous period. An increase is seen in loans to households (by 633 million leva or 3.4 per cent) and to other financial corporations (by 462 million leva or 23.7 per cent).

The favourable trend in the quality of loans and advances continued during the quarter. At end-June 20 17 the gross amount of non-performing loans and advances in the banking system was 9,462 million leva (compared to 9,966 million as of 31 March 2017).

In the reporting quarter, deposits in the banking sector increased by 0.5 per cent (363 million leva) with a growth rate similar to the one seen in January-March.

Deposits of all institutional sectors increased except for resources from other financial corporations, which decreased by 727 million leva (17.6 per cent).

Deposits of households grew by 172 million leva (0.4 per cent), of non-financial corporations by 387 million leva (1.8 per cent), and of the governments sector by 102 million leva (5.6 per cent).

During the quarter, the total equity in the balance sheet decreased by 208 million leva (1.7 per cent) to 12 billion leva as of 30 June 2017.