The results for the first half of 2009 show a pronounced increase of Unicredit Bulbank’s market share by all main indicators, UCB being number one in terms of assets, deposits, loans and shareholder’s capital.

With assets totaling BGN 11.4 billion as of end June 2009 UniCredit Bulbank is the biggest bank in this country having a market share of 16.5% and with BGN 2.9 billion ahead of the runner-up by that indicator.

UCB’s after tax profit for the first half of 2009 totaled BGN 133.4 mio which is 13.8% less than the period January-June 2008. “As expected the profit of the Bank in the difficult macroeconomic situation went down because we take on some of the negative effects of the crisis that also affects our clients and to a larger extent than many banks on the market", MB Chairman and CEO Levon Hampartzoumian, said. His words are fully confirmed by the fact that UCB's spread (difference) of interests on deposits and interests under loans amounts to 4.81% compared to 5.29% for the banking system as a whole. The spread of the Bank decreased with 1.79 percentage points compared to June 2008 when it was 6.6%, which means that the difference between interests under loans and on deposits between January-June 2009 have gone down with more than 27% compared to the same period of 2008. “This means that the Bank indisputably covers a portion of the increased price for the financial resource without transferring the whole burden to the customer. In other words we manage for the time being to offer competitive prices on deposits but also to keep relatively lower for the market interests under loans. With the first indications of recovery of the world and of the Bulgarian economy we can expect calming down of the interests under loans and deposits, however the pre-crisis levels of interests under loans will for sure remain in history”, Levon Hampartzoumian added.

UniCredit Bulbank is also leader in lending to companies and individuals with total amount of the extended loans reaching BGN 7.9 billion at the end of June 2009. This is a 15.4% increase compared to the same period of 2008 and 4.9% increased compared to the end of 2008. For the sake of comparison, the average increase of loans in the banking system for the period June 2008 – June 2009 is 11.9%, which shows that UCB continues to lend with better pace than the market. “Our traditionally more conservative approach to lending and the good risk management which was recently pointed out also by international rating agency Standard and Poor’s allows us to continue our financing support to the loyal clients and partners. We will keep this approach in the second half of the year as well”, Levon Hampartzoumian said.

During the first half of 2009 UniCredit Bulbank climbed to number one in terms of deposits as well with a total amount of BGN 6.4 billion of which BGN 3.3 billion are corporate deposits (number one on the market) and more than BGN 3 billion in retail deposits (second on the market). Thus UCB reached 15.1% total market share compared to 14.8% for the same period in 2008. “The increase in deposits is a proof of the customers” trust in UniCredit Bulbank, Levon Hampartzoumian said.

With a shared capital of BGN 1.5 billion, a 21% increase compared to the same period of last year, UniCredit Bulbank has the biggest market share by that indicator too.

The main efficiency indicators at the end of June 2009 are considerably better than the average for the banking system:

Return on equity 18.5 % compared to 11.9% for the banking system

Return on assets 2.38% compared to 1.43% for the banking system

41.6% cost/income ratio compared to 50.4% for the banking system

“In order to cope with the effects of the crisis and to be able to support our customers and employees during the second half of 2009 the Bank will continue its policy of strict control over costs and efficiency improvement. Our major focus during the crisis remains on support to our loyal customers as well as keeping the employees", Levon Hampartzoumian said.