The combination of a strong capital position, high liquidity and excellent results will allow the bank to develop its growth prospects

The results of the completed asset quality review of the Bulgarian banking system demonstrated that Postbank is a well-capitalized and financially sound organization. The asset quality review and stress test data, as released by BNB, show that even in an adverse scenario, Postbank’s common equity tier one capital ratio (CET1) is 19,7%.

The asset quality review was conducted with data as of 31 December 2015, while the capital adequacy was tested for the three-year period 2016-2018 under baseline and adverse scenarios.

“The exceptionally good results confirm the success and constitute an important reward for Postbank. I am confident that, Postbank will continue to be financially healthy, profitable and successful thus continue playing a key a role in the Bulgarian economy. We shall keep financing the economy and providing top-class service to our clients. We thank the authorities for an excellent collaboration. We thank our employees and their families for their commitment and support. But, mainly, we thank our customers for the business we have done together” said Mr Georgios Provopoulos, Chairman of the Supervisory Board of Postbank.

“Being a member of a European banking group, we were well prepared for the asset quality review, since last year we successfully participated in a similar test, conducted by the European Central Bank, with equally good results. I am happy that the asset quality review, carried out by the BNB, is positive not only for our bank but also for the entire system, which once again proved its stability and strengthened the confidence of the public in the commercial banks and the regulator,” said Mrs. Petia Dimitrova, CEO and Chairperson of the Management Board of Postbank, as well as member of the Management Board of the Association of Banks in Bulgaria.

“Postbank will continue its long-term strategy to be responsible, effective, innovative and a client-oriented financial institution. It will continue to play an important role in the development of the Bulgarian economy, by supporting households and businesses, and by maintaining high confidence in the banking system of the country,” Mrs. Dimitrova added.

Postbank started the review process from a strong position i.e.:

–          capital adequacy ratio as of December 2015 of 24.73% and common equity tier one capital ratio as of December 2015 (CET1) of 22.17%; the amount of the common equity tier one capital stands at BGN 771,939 thousand, and the equity stands at BGN 861,046 thousand.

–          liquidity ratio – 31.76%

In March 2016, following the acquisition of Alpha Bank’s operations in Bulgaria the bank increased its share capital by BGN 107.6 million. At the shareholders’ General Assembly, held on 30 June 2016, it was decided the bank’s profit for 2015 of BGN 84.1 million to be capitalized. Thus, the total capital adequacy ratio reached 25.5%.

For the first half of 2016, Postbank’s net profit amounted to BGN 55 million, which is 16% higher compared to the same period in 2015.

The combination of strong capital position, high liquidity and exceptionally good results from the asset quality review and the stress test will allow Postbank to develop its prospects for sustainable growth in the next years.