In 2024 the Bulgarian banking sector demonstrated stable growth, despite the economic challenges related to inflation and international uncertainty. The banking system continued to develop sustainably, preserving its capital stability and maintaining high levels of liquidity. This resilience was the result of effective risk management, strategic investments in digitalisation and innovation, as well as the ability of banks to adapt to the dynamically changing economic environment. Despite rising costs, the banking sector managed to maintain its stability thanks to well-structured management decisions and optimised resource allocation.

Regulatory mechanisms imposed in recent years ensured high levels of capital adequacy, which contributed to confidence in the sector. Digitalisation remained a top priority, with banks making significant investments in new technologies, improving access and efficiency of the services offered. Customer service also underwent transformation, driven by automation and the introduction of modern remote banking platforms, which facilitated financial transactions for businesses and households.

Bulgaria also went through a complex political situation in 2024. The parliamentary elections, as well as international geopolitical events, led to some postponement of the investment intentions of entrepreneurs. Thus, growth of corporate lending slowed down to about 10 percent on an annual basis, while the retail segments continued to steam ahead – mortgage lending maintained strong dynamics with an annual growth of over 25 percent, while consumer loans grew by 17 percent. It is important to note that this was not on behalf of risk – the levels of non-performing loans are at historically low levels, decreasing significantly on an annual basis.

Economic growth
Since the beginning of 2025, Bulgaria has become a full member of the Schengen Area, which has opened new opportunities for business and improved conditions for trade and investment. This factor is expected to have a positive impact on economic growth in the coming years.

At the same time, the effect of the European Central Bank’s interest rate cut will begin to be reflected in the banking system, as ECB will continue its gradual reduction of key interest rates in 2025. It is expected that by mid-year the key interest rate will be reduced to two percent, which will have an impact on banks’ interest income and will lead to better lending conditions.

Our mission is to make banking more accessible, faster and more secure

The main focus this year will be the successful transition to the eurozone. The adoption of the euro is a strategic moment for the country and will support Bulgaria’s economic integration, strengthening its competitiveness on international markets. It is expected that the new currency will contribute to the enhancement of international trade and will provide Bulgarian companies with easier access to capital markets. The reduction of currency risk will encourage the inflow of capital and the financial system will become even more transparent and predictable.

The banking sector will continue to play a key role as a stable partner to businesses and households, providing support during the transition to the euro.

In 2025, efforts will be intensified to increase financial and digital literacy so that all economic participants can effectively adapt to the new conditions. In addition, banks will continue to invest in innovation and technology to ensure a smooth and effective transition to the euro and to offer even more flexible and accessible services to their customers.

Modern solutions
As one of the leaders in the financial sector setting trends and shaping the direction of development, Postbank is an active participant in the processes affecting Bulgarian society. We offer modern solutions, high-tech innovations, and innovative products and services that ensure speed, security, and excellent quality for a seamless banking experience. Our mission is to make banking more accessible, faster and more secure.

We continue to successfully implement our digital strategy, and we believe that Postbank will soon be transformed into a technology company that provides customers with full control over their finances through intelligent, personalised services.

In conclusion, the banking sector in Bulgaria entered 2025 on a solid foundation, ready for new challenges and a clear focus on the country’s successful integration into the euro area. Despite the dynamics of macroeconomic processes, banks remain stable and continue to be a reliable partner for businesses and citizens.