Households are still cautious and conservative in taking new loans, while consumer and mortgage lending keep the same levels as last year;

In the last two years, the most active in seeking working capital loans and financing under operational programmes have been the agricultural producers and grain traders due to regional specifics;

Varna region records strong results in the first half of 2013 in terms of investments in Pioneer mutual funds.

Business drives lending in Varna region, while households are still cautious and conservative when it comes to taking new loans. This became clear at a meeting of the regional directors of UniCredit Bulbank in Varna with local media.

Lending in Varna region marks a minimum year-on-year increase by nearly 1%, up to 417.3 million Bulgarian lev. Business in the region has, however, revived and the total corporate credit portfolio of the bank has increased by 15% year-on-year as of the end of May 2013. At the same time, however, company savings have grown by 12%. In the last two years, the most active in seeking working capital loans and financing under operational programmes have been the agricultural producers and grain traders due to the regional specifics.

“Corporate clients are seeking financing mainly in order to improve their technological equipment because this is a way to improve their competitiveness”, said Yordanka Panova, Regional Director of Corporate Banking –Varna. She added that there is a noticeable development in the metal processing sector in the region, where these are mainly export-oriented companies.

Small business in the region is also gradually increasing its interest in bank financing and the total SME credit portfolio records a growth by 5%, reaching nearly 93 million Bulgarian lev. 18% of small and medium enterprises have availed themselves of working capital financing and another 5% have taken loans with an investment purpose. The number of clients of UniCredit Bulbank in this segment has grown by 9% over the last year.

“In Varna region we do not observe an increase in investment loans because we are missing quality investment projects”, commented Krum Alexiev, Regional Director of Retail Banking – Varna of UniCredit Bulbank. However, he pointed out that agriculture and grain trading are among the most active sectors in the region.

Savings of households and companies in the region of Varna have grown by 16% within one year, reaching 335 million Bulgarian lev. The share of household deposits is 76%, i.e. 254 million Bulgarian lev, and on an annual basis the increase is by 18%. Savings of micro and small enterprises with the bank mark a growth by 12%.

Quite logically, most funds with the bank are deposited by people aged between 45 and 65 years – in the region of Varna 50% of all deposits are held by people above middle age who are still working actively. The share of savings of people who are between 30 and 44 years old and those over 65 is 26% and 19%, accordingly. Most popular are the deposits in BGN, followed by those in EUR and USD.

The average amount of a term deposit of an individual is a little bit over 10 thousand Bulgarian lev, according to data of UniCredit Bulbank for Varna. Deposits up to 1000 Bulgarian lev constitute nearly 30% of all deposits but at the same time their share is below 1% of the total volume of attracted funds from term deposits.

Varna region reports a very strong first semester of 2013 in terms of investments in Pioneer mutual funds, where only at the end of May the investments exceed the amount of those made in the whole year of 2012 in the region – 1 million Bulgarian lev. At the same time, 30% of the investments in Pioneer funds in the region were made by foreign investors.

Investments are gaining more and more popularity with smaller towns. An example for this is the town of Popovo where since the beginning of the year investments worth 450 thousand Bulgarian lev in Pioneer funds have been made.

More information for media:

UniCredit Bulbank, Identity & Communications Department

Viktoria Blajeva, Phone: + 359 2 9264 993, wjlj/ebwjepwbAvojdsfejuhspvq/ch

Ekaterina Ancheva, Phone: + 359 2 9264 963, flbufsjob/bodifwbAvojdsfejuhspvq/ch

Magdalena Ivanova, Phone: + 359 2 9232 528, nbhebmfob/jwbopwbAvojdsfejuhspvq/ch