UBB AD reports the recent post-crisis year with a loss in the amount of BGN 40.6 million, after allocating provisions

  •  Despite the reported loss the Bank’s capital stability remains high 
The General Meeting of the Shareholders of UBB AD passed a resolution that the loss for Y2012 (after provisions and taxes) in the amount of BGN 40 694 182 should be covered by the Reserve Fund and the retained profit from previous years in the amount of BGN 900 667 should be allocated to the Reserve Fund.  

Despite the reported loss UBB AD’s equity as of the end of Y2012 amounted to BGN 1.070 billion and secured a level of capital adequacy of approximately 14 percent, or nearly 2 percent above the level, required as per BNB’s regulations.

Stilian Vatev – BoD Chairman and Chief Executive Officer- shared:

“The last Y2012 was the third consecutive year after the shock Y2009, during which the main challenges before the Bulgarian banking sector, including before the United Bulgarian Bank, continued to be the difficult economic environment, the growing burden of non-performing loans, the feeble economic activity, the lack of sufficient opportunities and prerequisites for growth in the banking sector.” He added that “despite these adverse conditions UBB AD has still been able to demonstrate its potential for adequately tackling the problems, brought about by the crisis, thus proving once again its capital stability and maintaining its traditionally strong and competitive position on the Bulgarian banking market. During the recent years our main focus has been the effective work, targeted at the problem loans, accompanied with a highly conservative provisioning policy and restoring the bank’s status of a self- financing institution through expansion of its deposit base. The successful implementation of these two goals had a significant price – a decrease in the loan portfolio, a certain loss of market positions and deterioration of the year-end financial performance. The reported loss for Y2012 is logical and is due mainly to the significant decrease in the loan portfolio and the interest income, as well as to the significant volume of the allocated provisions for problem loans’ impairment. However, this provides us with sufficiently good conditions to concentrate again on much more active lending activity in Y2013 and during the subsequent years to quickly regain our traditional leadership position on the Bulgarian banking market, as well as the high level of the year-end financial performance.”

The General Meeting released from responsibility all members of the Board of Directors with respect to their activities, related to managing the bank over the period from 01.01.2012 until 31.12.2012 and re-elected Mr. Teodor Valentinov Marinov member of the Board of Directors with a 3-year mandate.