The assets of Bulgarian banks dipped 1.1 per cent to 68.6 billion leva in October 2008 compared to September against the backdrop of the global financial crisis, central Bulgarian National Bank data showed.

Year-on-year growth slowed down to 28.9 per cent in October from 33.6 per cent in September.

Foregn bank branches broke ranks with rivals posting a rise in assets, the central bank said.

However, the top five lenders held their ground on 57.8 per cent of the market combined.

Fluctuations on the global financial scene changed also the behaviour of customers, whose savings with banks slumped to 60.1 billion leva in October from 60.9 billion leva in end-September.

Household deposits dropped by 349 million leva to just more than 21.8 billion leva, while companies deposited 19.3 billion leva, which is 924.5 million leva less than the previous month.

Attracted resources from credit institutions added 133.6 million leva.

In spite of the decrease, deposits of individuals retained their lead as banks' biggest source of funding accounting for 36.3 per cent of the total volume of attracted resources.

Gross loans and advances surged 1% month-on-month to 56.4 billion leva.

Corporate loans picked up 1.1 per cent on the month backed by small and medium banks, while the top five banks drove the 2.2 per cent monthly growth of retail exposure.

Housing loans rose 2.4 per cent month-on-month to 8.028 billion leva, while the consumer loan portfolio expanded by two per cent to 9.1 billion leva.

The sector's profit totaled  1.217 billion leva in October, up by 26.2 per cent year-on-year versus 28.6 per cent year-on-year in September.

Source: Dnevnik.bg