ROMANIA
Under the burden of still elevated inflation, tightening financing conditions and weak economic sentiment, Romania braces for a soft landing in FY:23 (GDP, up 2.8% against 4.8% in FY:22)
BULGARIA
Banks’ profits strengthened in FY:22, thanks to stronger net operating income, especially net interest income (NII)
NII rebounded in FY:22, on fast credit expansion and rising interest rates
Provisioning charges dropped in FY:22, reflecting improved asset quality metrics
Against a challenging economic backdrop, banking profitability should come under (modest) pressure in FY:23
APPENDIX:
DETAILED MACROECONOMIC DATA
REGIONAL SNAPSHOT: MACROECONOMIC INDICATORS & FINANCIAL MARKETS
Southeastern Europe & Mediterranean Emerging Market Economies: Bi-Weekly Report 25 April - 8 May 2023