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Bulgarian banks say their rates and fees are among Europe's lowest as equity grew by €5.5 billion in 2020-2025

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Interior of a modern bank branch with service counters, soft lighting and an empty waiting area Financial
Interior of a modern bank branch with service counters, soft lighting and an empty waiting area

Association of Banks in Bulgaria chair Petia Dimitrova told the OMFIF Sofia Forum that banks lent more than €30 billion over the period and spent €250 million on the euro changeover.

Bulgaria's banking system has some of the lowest interest rates and fees in Europe, Petia Dimitrova, chair of the Executive Board of the Association of Banks in Bulgaria (ABB) and chief executive of Postbank, said at the OMFIF Sofia Forum at Boyana Residence, BTA reported on 3 November. The forum was organised by the think tank OMFIF under the patronage of the Bulgarian National Bank and in partnership with the ABB.

Dimitrova focused on the 2020-2025 period. Despite several economic shocks in those years, she said, interest rates did not rise. She put net interest income in Bulgaria at 19.5%, compared with an average of 28.6% in the euro area, as evidence of low costs for customers.

Banks' equity rose by €5.5 billion between 2020 and 2025, and their investments over the period equalled 70% of realised profits, she said. In her view, this showed that banks had reinvested a large share of their earnings in capital and in the Bulgarian economy rather than sending profits abroad. More than €30 billion of loans were granted in the period and the banking system's assets doubled.

The sector spent €250 million adapting its systems for the switch to the euro, Dimitrova said. She described euro area membership as "a significant and binding expression of trust" in the economy and the country's institutions.

Other bank leaders at the forum made similar points, according to BTA. UniCredit Bulbank chief executive Tzvetanka Mintcheva called the euro changeover an example of successful cooperation among banks. First Investment Bank chief executive Nikola Bakalov said the release of reserve requirements had given banks additional resources and contributed to persistently low interest rates. Bank DSK chief executive Tamas Hak-Kovacs said the changeover had been managed more smoothly in Bulgaria than in other countries.

The comments come as the draft 2027 budget proposes a one-off 33% tax on excess profits in several sectors, including banks. In her address, Dimitrova said capital seeks security and predictability as well as returns.

Sources