The banks quoted on the Bulgarian Stock Exchange (BSE) established themselves as some of the best-selling stocks in 2009, official data show. Two of the five public banks have been traditionally among the top three stocks in liquidity for the past nine months. The biggest number of deals in the last quarter of 2009 were closed in Central Cooperative Bank's (CCB) stock. A touch above 7 million shares changed hands in 5,506 deals. Eurohold Bulgaria was second with 2.75 million lots sold in 2,951 deals. First Investment Bank (FIB) came third with nearly 2.1 million shares transferred in 2,658 deals. Bank shares enjoy high liquidity, because they are quality stocks, Konstantin Abrashev of BenchMark Asset Management said. The higher liquidity of banks is due to investors' unwillingness to take more risk, so they focus mainly on the blue chips, Daniel Dimitrov of Real Finance Asset Management pointed out. All public banks except for EIBank are included in the Sofix index of blue chips. Throughout 2009 FIB remained among the three best performers in liquidity, while CCB was fifth in the first quarter of the year. CCB climbed three positions up in April-June, second only to its majority owner Chimimport. In the third quarter of the year CCB and Chimimport switched places and FIB remained third. Bulgarian banks continue to perform better than their peers in Eastern Europe, which boosts interest in their stocks, Daniel Dimitrov explained. Banks are among the first companies to attract the attention of both native and foreign institutional investors, Konstantin Abrashev commented. CCB and FIB, which are among the few remaining predominantly Bulgarian-owned banks, may lure foreign institutional investors, analysts said. There was such interest in early 2009, when Oman's State General Reserve Fund acquired 30% of Corporate Commercial Bank (KTB) (1.8 million shares) from the bank's majority owner, Bromak. Such deals are unlikely for CCB and FIB this year, because the majority shareholders will hardly be willing to sell bigger packages at the current prices, Konstantin Abrashev said. While trade volumes in Bulgaria remain low, we are unlikely to witness such big deals as KTB's, Daniel Dimitrov commented.
Source: Pari (14.01.2010)

Bulgarian lenders have moved from an all-out deposit war into deposit retreat, with eleven players shaving rates and three scrapping promotions in December. Meanwhile, the credit market ground to a complete standstill. Financial consultancy Moite Pari said in its monthly review that rates have been slashed in all three major currencies including the lev, euro and the US dollar. The list of financial institutions that have tweaked deposit offers features Bulgarian American Credit Bank, Raiffeisenbank, First Investment Bank (FIBank), Postbank, UniCredit Bulbank, United Bulgarian Bank (UBB), Societe Generale Expressbank, Emporiki Bank, Alpha Bank, Piraeus Bank and CIBank. Rates have been chopped off by between 0.25 and 1.55 percentage points, with return on three-month term deposits lapsing back into March 2009 levels. As the market searches for a direction, rates range between 4% and 8% annually across lenders.
Source: Dnevnik (14.01.2010)

The new candidate directors of the Bulgarian Stock Exchange (BSE) will manage to beat the incumbents at Wednesday's general meeting, vote calculations show. The ministry of finance, with 44% of the capital, holds the trump card. The big obstacle to the approval of the new board of directors is BSE's fragmented shareholder structure, with only a few investors holding more than 1%. Big investment intermediaries will back up the change, since that will give them strong representation on the board of directors: the chairman of the Bulgarian Association of Licensed Investment Intermediaries, Lyubomir Boyadzhiev, is nominated for a seat. Commercial banks will give their support in the vote, as they are offered to keep a key member, Asen Yagodin. Three banks are among the big shareholders in BSE. UniCredit Bulbank holds 119,800 shares, Central Cooperative Bank and First Investment bank have 80,000 shares each. Their total interest is a touch below 5% and, added to the votes of intermediaries, secures the crucial 51%. The likely election of new directors, however, will not be the end of changes at the BSE. The strong representation of investment intermediaries has made other market players seek place in BSE's management. The board should include representatives of the issuers, the management board chairman of the Bulgarian Industrial Capital Association, Vasil Velev, pointed out. The big institutional investors should also have their members, Bulgarian Association of Asset Management Companies chairman Stoyan Toshev said.
Source: Pari (20.01.2010)

Crisis pummels 2009 profits of 22 Bulgarian banks Bulgaria’s banking sector rounded off 2009 at a profit but 22 out of the 33 market players have turned in a worse performance than a year earlier as the crisis rumbled on. Data by the Bulgarian National Bank (BNB) revealed that banks have suffered deterioration of between 8% and a staggering 79%, with West-East Bank plummeting almost 225% after it swung to a BGN 3.9 million loss from a profit of BGN 3.1 million for 2008. Six banks have pulled off better performance including Corporate Commercial Bank, ProCredit Bank, Citibank Sofia Branch, International Asset Bank, Teximbank, Bulgarian Development Bank and Central Cooperative Bank. Alpha Bank Sofia Branch and Emporiki Bank have seen profits stage precipitous drops from BGN 68.9 million to BGN 23.1 million, and from BGN 7.024 million to BGN 3.7 million, respectively. Banks’ write-down costs stood at BGN 1.040 billion in 2009, a whopping increase from BGN 330.5 million for the previous year as both firms and households scrambled to pay fat loans handed out when lending was all abuzz. Overdue loans are creeping up, with loans with delays of over 30 days hitting 13.64% of the total gross volume. Loans which are more than 90 days overdue speak for 6.42% of the combined portfolio. The banking system posted an unaudited profit of BGN 780 million for 2009 versus BGN 1.4 billion for 2008. Assets added up to BGN 70.9 billion, up 1.9% year-on-year.
Source: Dnevnik (01.02.2010)

Insolvent Bulgarian company Elpina Foods has put up chicken farms for sale to pay off debts to First Investment Bank (FIB), the Bulgarian Chamber of Private Enforcement Agents in Bourgas said on its website. Elpina is co-owned by companies owned by infamous businessmen Mario Nikolov and Lyudmil Stoykov, who have been under trial since 2007 for allegedly siphoning off financing under the EU’s SAPARD pre-accession programme. The assets, located in Valchin, Slavyantsi, Grozden and Esen, are estimated at BGN 700,000 put together. The Valchin facility was assesses at the highest price of BGN 372,000.
Source: Dnevnik (15.02.2010)

Bulgaria’s deposit rates unanimously head south Jan 2010 Extending a trend that started last September, deposit interest rates in Bulgaria staged a new drop in January 2010, down by 0.94 percentage points for local currency and by 0.25 points for euro. Fueling hopes that the borrowing costs will finally follow suit, the average rate slipped to 7.20% on lev-denominated term deposits and to 6.05% on their single-currency counterparts. On a monthly basis, the rates fell by 0.30 and 0.02 points, respectively, according to the Bulgarian National Bank (BNB). Corporate deposits have also moved in the same direction, edging 0.16 points lower to 6.43% for levs and a deeper 1.13 points to 3.97% for euro. January saw the market’s eight most active lenders cut their deposit rates, said financial consultancy Moite Pari. Deposit rates shed between 0.25 and 1 points at UniCredit Bulbank, DSK Bank, First Investment Bank (FIBank), Allianz Bank Bulgaria, Raiffeisenbank, Piraeus Bank, CIBank, and Alpha Bank. However, loan rates are still holding their ground for both businesses and households. January’s rates are higher than for the same month of last year even though local-currency home loans have seen a decline.
Source: Dnevnik (26.02.2010)

Cases for obligations of nearly BGN 265 thousand were started against a Balkancar Zarya JSC - Pavlikeni. There are already judgments for some of them and the company is obliged to pay BGN 185 thousand on them. Part of the cases is civil, brought by several companies, others by the municipality in Pavlikeni, and the NRA - Veliko Tarnovo. The division of the revenue agency has requested distraint of the bank accounts of Balkancar Zarya in First Investment Bank and the UBB to secure debt of BGN 40.5 thousand. The report of the company shows that there are obligations to the municipality, even for unpaid garbage fee of BGN 21.6 thousand. By decision of the court in another case some of the obligations to the municipality will be paid deferred.
Source: Dnevnik (03.05.2010)

UniCredit Bulbank posted the highest profit for the first quarter (Q1) of 2010 - BGN 37, 9 million, the official statistics of the Bulgarian National Bank (BNB) shows, according to the Pari daily. Its financial result lost 35, 41% on an annual basis. United Bulgarian Bank (UBB) and DSK Bank follow with BGN 34, 7 million and BGN 32, 5 million respectively. Corporate Commercial Bank (Corpbank), Raiffeisenbank, Piraeus Bank, First Investment Bank (Fibank), Bulgarian American Credit Bank (BACB), Central Cooperative Bank (CCB) and Bulgarian Development Bank (BDB) are also among the top 10 banks in terms of revenues for Q1 of 2010. Three of the banks have registered a growth in profit on an annual basis – Corpbank (36, 1%), UBB (23, 8%) and BDB (1,6%). BACB has registered the highest loss in profit compared to the same period of 2009 – 48, 6%. UniCredit Bulbank occupies the first position in terms of assets as well. The financial institution's assåts amounted to BGN 11, 4 billion in the end of Q1, gaining 3, 4% on an annual basis. DSK Bank is second with assets of BGN 8, 6 billion, followed by UBB and Raiffeisenbank with BGN 7, 9 billion and BGN 6, 8 billion respectively. Raiffeisenbank’s assets increased 10% on an annual basis. UBB’s assets added 5,2% for the same period.
Source: Pari (03.05.2010)

UniCredit Bulbank registered a 34% drop in its profit for the first half of 2010, the Pari daily informs. Still, the bank’s BGN 88, 3 million profit was the highest compared to other leading Bulgarian financial institutions. DSK Bank’s profit for the same period fell 17, 5% on an annual basis to BGN 65, 3 million. United Bulgarian Bank (UBB) lost 9% of its gainings compared to the previous year earning BGN 48 million. Corporate Commercial Bank (Corpbank), Raiffeisenbank, Piraeus Bank, Postbank, First Investment Bank, Societe Generale Expressbank and Bulgarian Development Bank also entered the top 10 in terms of positive financial results for H1 of 2010. Corpbank achieved the highest growth of profits compared to the same period of 2009 – 30% to BGN 38 million. Alpha Bank registered the highest loss, posting a negative financial result of BGN 37, 4 million. Other banks that posted negative results were NLB West East, Emporiki Bank Bulgaria and T.C. Ziraat Bank Sofia. UniCredit Bulbank tops the ranking in terms of assets volume with BGN 11 billion by the end of June, followed by DSK Bank with BGN 8,4 billion and UBB with BGN 7,7 billion.
Source: Pari (02.08.2010)

Bulgaria's blue-chip First Investment Bank (FIBank) has acquired a 2% stake in local health insurer Zdravnoosiguritelna Kasa Prime Health, the lender said in a statement on Thursday. The bank has further agreed to subscribe a number of shares that will allow it to become a majority shareholder in a potential increase of the insurer’s capital, which currently stands at BGN 2 million. No specific timeframe was provided. Zdravnoosiguritelna Kasa Prime Health holds slightly over 2% of the Bulgarian private health insurance market, ranking 11th among all 20 market players. For the first five months of the year, it reported revenue of just less than BGN 500,000. The Bulgarian private health insurance continued to expand, reaching BGN 21.6 million in terms of premium income from January through May, according to figures by the Financial Supervision Commission (FSC). Paid claims stood at BGN 3.77 million. The market leader, with a 21% market share, is Medico-21, which is controlled by blue-blooded pharmaceutical company Sopharma. Inevstbank-owned former leader Bulgaria-Zdrave was ousted to the second spot with 14.7%. Third ranks Generali Zakrila with 13.5% of all premiums.
Source: Dnevnik (13.08.2010)

Because of unpaid loans and debts to contractors over 60 companies in the region of Veliko Tarnovo are currently being sold. There were several procedures for most of the companies made by private officers of the court. Among the sites being sold, are factories, hotels, industrial premises and factories. Most of the properties are under foreclosure by banks. Since the beginning of the year a buyer for the glass factory in Elena could have not being found. Interior Glass with which all hopes to restore the rail line were connected, is split into parts, but is still unsaleable. Its total cost of nearly BGN 10 million has surprised many people.
Source: Borba - Veliko Tarnovo (13.09.2010)

First Investment Bank already owns a controlling share in the health insurance company Fi Helt JSC, said the bank. In August the credit institution bought 2% stake of the capital of the health fund. The controlling stake was acquired after a capital increase of the fund to BGN 5 million, of which FIB has recorded 2.755 million new shares. As a result, its total contribution increased to 57.1% of the capital. So far, the new owner has not announced any plans for the development of the company for voluntary health insurance.
Source: Dnevnik (03.11.2010)

Bulgarian businessman Margarit Todorov has sold his 48% stake in wine maker Domaine Boyar to the company's majority shareholder, Santa Ana Ventures, which is registered in the British Virgin Islands, the company said on Tuesday. Todorov has also pulled out from the company's management, with board member Tsanko Stanchev also following suit. Todorov is the founder of Domaine Boyar, a company engaged in wine production and distribution, ranking among the country's top wine exporters to the UK in terms of sales. Evgeni Harmanliyski, who managed the company together with Todorov, will continue to serve as executive director at the firm. Vladislav Tanchev, who become part of Domaine Boyar's team in 2007, will join the company's board of directors and will be in charge of business development, new products, sales and marketing. Following plans to beef up its position on the domestic market, the company will resume wine production at its factory in Shumen, which was closed two years ago, and will also invest BGN 440,000 in its factory in Korten next year. Domaine Boyar currently produces the bulk of its wine at the Sinite Skali winery in Sliven, southeastern Bulgaria.
Source: Dnevnik (15.12.2010)