Best bank: DSK Bank
Belgium-based KBC’s Bulgarian unit formally merged with former Raiffeisen International Bank subsidiary United Bulgarian Bank (UBB) in 2023, creating the country’s biggest bank. KBC had completed the legal acquisition of RBI’s operations in Bulgaria in 2022. Most of the synergies of the merger were, therefore, far from being realised in 2023 as the operational integration was only just beginning.
After this merger, DSK Bank – owned by Hungary-based OTP – is now the second-biggest bank in Bulgaria. The bank, under chief executive Tamas Hak-Kovacs, continues to grow both by loans and deposits, gaining market share even while demonstrating exemplary efficiency.
DSK’s market share is biggest in retail banking, but it grew its corporate loan book by 13% in 2023 – faster than the system – reaching a corporate-lending market share of 16%.
In retail banking it grew lending by 16% year on year, reaching a market share of 29%. The non-performing loan ratio, meanwhile, fell to just 1.2%. Profit after tax rose by 78% to Lev1 billion ($540 million) in 2023. Its cost-to-income ratio fell to just below 40%.
In June 2023, DSK reported being the first to introduce mobile person-to-person payments using mobile phone numbers under the national card programme’s Blink initiative, adding other features to the service later in the year.
Among other digital innovations in areas such as merchant acquiring – and launching digital onboarding for small businesses – DSK has introduced a digital car-leasing platform in Bulgaria called Nova Kola. It saw strong growth in 2023 and had plans to add new partners, together with plans to launch a feature that will allow consumers to sell their own car on the platform.
Best digital bank: United Bulgarian Bank
United Bulgarian Bank launched several improvements that contributed to an impressive increase in mobile app usage in 2023.
The bank saw 65% year-on-year growth in digital clients to 835,265. Digital transactions grew by 40% to 16,176,392, amounting to 97% of all transactions.
The bank introduced 25 new features in its app. These included home delivery of debit cards and push notifications for account movements. It also offers an integrated bank insurance model and peer-to-peer money transfers.
The app was accessed by more than 830,000 clients, representing 20% of Bulgaria’s adult active population.
The bank’s artificial intelligence digital assistant, Kate, was able to independently understand and answer over 60% of client inquiries, achieving a 70% customer satisfaction rate and 78% usage among mobile banking users.
Best bank for ESG: United Bulgarian Bank
United Bulgarian Bank financed 305 renewable energy projects with a value of €233.7 million in 2023, marking a 36.7% increase in financing activity over the previous year. Renewable energy accounted for 94% of the total energy production financed by the bank.
The bank worked on several of Bulgaria’s flagship sustainable financings. This included financing the construction of two solar power plants in southern Bulgaria, which are expected to have an installed capacity of 26 megawatts peak and generate 41,000 megawatt hours, supplying approximately 130 households with renewable energy. In another landmark deal, the bank provided a €40 million loan to fund the acquisition of Bulgaria’s second-largest wind farm located in Kazanluk.
The bank also introduced Plug & Go, which allows customers to lease hybrid cars for long-distance travel. This addresses the challenges of limited electric vehicle mileage and underdeveloped charging infrastructure in Bulgaria.
The bank’s agricultural carbon calculator generated 187 detailed emission reports. This tool has been instrumental in providing insights into the environmental impact of the agricultural sector.
Best bank for corporate responsibility: DSK Bank
DSK Bank had a busy year in corporate responsibility. It made important contributions to early childhood development, gender equality and wildlife support.
The bank launched an initiative to improve financial literacy among young people and organized a series of interactive performances in schools in six cities in Bulgaria, which attracted an attendance of over 1,000 students.
It continued its partnership with SOS Children’s Villages Bulgaria, facilitating donations exceeding Lev730,000 ($404,000) to the non-profit in 2023.
The bank also supported the BCause Foundation, especially during the International Women’s Day campaign and participated in the local version of Race for the Cure, contributing to the fight against breast cancer.
The bank partnered with Mastercard to create the interactive game, Mission Zoo Detectives, to protect biodiversity and promote environmental education. This led to over 60,000 requests for the Wildlife Impact debit card, spreading awareness about endangered species.
Best bank for corporates: UniCredit Bulbank
UniCredit Bulbank works with 72% of international corporates operating in Bulgaria. It has a fully remote model for corporate banking services with dedicated remote relationship managers.
It has automated the preparation of more than 40% of loan contracts. Last year it also launched its digital document exchange platform, which allows companies to sign and exchange documents remotely.
UniCredit Bulbank introduced the third phase of its digital financial analysis tool on its internet banking platform. The tool’s new features include analyzing point-of-sale transactions and monitoring user behaviour on POS terminals.
