The Annual meeting of shareholders of Bulbank held this morning approved the results of the Bank for 2005. The consolidated net profit of BGN 96.1 million represents 16% of the total profit of the banking system, showing increase of 11.4% compared to previous year results. The net profit of Bulbank is BGN 94.2 million leva and UniCredit Leasing, fully owned subsidiary of the Bank reports BGN 1.9 million net profit

In 2005 the assets of Bulbank reached BGN 3.5 billion at the end of the period. The asset composition changes for next consecutive year with decreasing share of investment banking and capital market operations while commercial banking boosts. Client deposits reach BGN 2.6 billion.

The capital of Bulbank increases with 6.2% and reaches BGN 610 million (BGN 574 million at the end of 2004). The profitability of Bulbank remains substantial – return on assets is 2.9%, return on equity – 16.3%. The cost / income ratio reaches 39.3% (42.4% for the previous year.)

Bulbank reports revenues growth of 15.2%. The net interest income is increased by 21.1% to BGN 163 million (BGN 134 at the end of 2004) while fees and commission revenues increase by 12.3% to BGN 44.7 million. Revenues growth was sustained by strong growth of the lending operations. Credit portfolio grows by 22.4% and reaches BGN 1.7 billion. Non-performing loans/Gross loan ratio improving to 1.6% compared with 2.46% in 2004 and 3.6% average for the banking system.

Retail banking marks 80.5% growth of loans to individuals and small companies reaching BGN 345 million. The mortgages only grow by 114% to BGN 266 million and a market share of 13%. Corporate clients’ loan portfolio grows with 13.1%. Client base reaches 435 000.

Cost grows with 6.8% to BGN 89.8 million while the net operating income grew by 21.4% reaching BGN 138.81 million.

The shareholders voted BGN 65.5 million dividend for the year (69% dividend payout), representing BGN 0.394 dividend per share. The Annual General Meeting of Shareholders voted KPMG Bulgaria to be chosen for auditor of the Bank for 2006.

Integration between Bulbank, HVB Bank Biochim and Hebros Bank will be the main accent for 2006 development. The consolidated entity will have more than 1.1 million clients with huge development potential when introducing the best products and business models. In 2006 a specialized entities for factoring and consumer financing Clarima Bulgaria will be established. Specialized new leasing and lending centers will be opened. The ATM and POS network expansion will continue in 2006