Petia Dimitrova: We, at Postbank, believe in green ideas and develop them in our products

Ms Dimitrova, what type of year did Postbank send off and what are your expectations for the current 2023?

 
At the beginning of each year, we traditionally want to believe that it will be better than the previous one, but it is important to look at it in the context of the bigger picture rather than as 365 individual days. That’s why it is sensible that your question refers to both the previous and the current year.
We send off a year that was very successful for us. Our loan portfolio exceeded BGN 10 billion, which is a growth of 14.5% on an annual basis and a market share of 11.9%. We are growing at the pace of the market, which is our goal, because we do not want to gain market share at any cost but rather to strictly adhere to our credit criteria and maintain our excellent profitability indicators.
The acquisition of the Bulgarian branch of BNP Paribas Personal Finance, which we expect to be finalised in 2023, will be another step towards expanding our market share and taking an even stronger and more stable position in the “big four” of the banking sector. This merger is taking place in a challenging and changing environment that only drives us to be even bigger winners. Our vision is directly related to the desire to preserve and develop the business model of BNP Paribas Personal Finance, together with the team that achieved these successes over the past 15 years.
However, this year we will often have to face challenges and make complex decisions. Most experts expect the recession in the euro area to be rather short and shallow but this can change depending on the development of geopolitical factors such as the war in Ukraine, the rate of increase in inflation and the interest rate policy of the central banks. The expectations are that the Bulgarian economy will slow down its growth. The forecasts for GDP growth are mixed and range from a conservative 0.1% to a far more optimistic 1.6%. Looking at the current macroeconomic indicators, we are rather optimistic that the slowdown in the economy will be short-lived and we will quickly return to growth.

What is the bank’s policy with regard to the green transition?

 
The green start towards a sustainable future is achieved with every small step, effort and achievement that the business and society make in pursuit of a more environmentally friendly behaviour. Today, we see the consequences of climate change in every area and activity of our lives.
The green transition affects all economic agents, not only the businesses but also the households, and we play an important role in achieving it. The importance of introducing energy-efficient and ‘smart’ solutions in both businesses and households is particularly noticeable now when energy prices have become unpredictable, inflation is high and consumers are looking for ways to reduce their costs and save their money.
A large-scale photovoltaic project has been in serious development for several months now at the Central Office of Postbank. Its implementation will give us a number of technical, marketing and financial advantages, allowing us to reduce our carbon footprint. In the meantime, the offices and premises will be completely renovated and when they are put into operation they will be the most modern and comfortable ones to date. This will increase the confidence of employees who will know that the company is implementing the latest technologies for sustainability and climate change mitigation.
Environmental, social and governance (ESG) initiatives are becoming increasingly important topics within the banking sector, as institutions adjust their strategies and practices to improve their performance. Financial institutions have the opportunity to leverage these initiatives and turn them into strengths in the marketplace.
That is why we are about to present and implement our unique new project “A Bank for Green Ideas”. Its highly environmental focus will make it a significant pillar in our corporate social responsibility towards the society.
We recognize our key role in setting an example for our clients and our goal is to offer environmentally friendly products in our credit portfolio in order to meet the market trends and changing needs of our clients with the right range of green lending products.

What are your leading products for energy efficiency of the businesses and households?

 
We offer a wide range of various products to meet the different needs of our clients.
That’s why we recently launched our Green Mortgage Loan on the market. The innovative financing solution can be used both for the purchase of an energy-efficient residential property of Class A, or higher, or for the refinancing of such mortgage loans, as well as for energy-efficient home improvements such as renewable energy production through photovoltaic panels, solar panels for production of hot water or investment in smart home energy systems in order to minimize energy consumption.
In addition to the lower interest costs on the loan, by investing in an energy-efficient home or improvement, we reduce our energy consumption and carbon footprint and also achieve additional savings as a result of the lower utility bills.
We have similar solutions for the businesses – we offer both standard products and ones that meet the specific needs of our clients and are tailored to the specifics of their business, so we have a solution for every situation: the purchase of high-performance machines and electric vehicles, as well as the introduction of measures for energy efficiency of production premises and other solutions in general aimed at increasing the efficiency of processes and the consumption of energy and inputs.
Our Green Loan product for corporate clients offers a streamlined approval process and a competitive loan structure to finance the construction of photovoltaic plants for personal consumption and sale of electricity.

Will Bulgaria be able to join the euro area as of 1 January 2024?

 
The adoption of the single European currency by Bulgaria is a national goal and a window to new opportunities that require public energy, support and unity. The most important thing in the process is the Bulgarian citizens’ trust in the euro and it can only be built in an open dialogue with the institutions, political parties and our European partners.
As regards the banking sector in our country, it is among the most prepared for full membership in the euro area and this is due to the fact that our country is already part of the banking union. The banking system is very well capitalized, over-regulated and liquid and all its indicators are above the European average.
We, banks, are ready. We have internal communications and experts following a plan for entry into the euro area, and we are convinced that the adoption of the single European currency by Bulgaria will bring many benefits to the clients. It will have a positive impact on our economy, bring stability and be a driver for accelerating reforms to reach European living standards and a more favourable business environment.