Page 78 - SE Outlook Regions 2022

despite the constraints, the retail sector remained rather stable. After
most of the restrictions were lifted in April 2021, retail sales improved
further. Rising fuel prices have also affected the sector.

Retail sales (at constant prices) increased 8.4% year on year in
September, after growing by 12% y/y in August, according to the
statistics office data. The rise in September was due to increasing
motor fuel sales, food and non-food product sales.

Retail sales of food, beverages and tobacco went up 5.9% y/y in
September, after rising 10.5% y/y in August. Sales of non-food products
(except fuel) expanded 11.8% y/y, after increasing by 14.2% y/y in
August. Automotive fuel sales increased 3.5% y/y in September, after
rising by 8.5% y/y in August.

In 2022, retail trade is expected to keep the positive trend from 2021
thanks to expected strong private consumption and high energy prices.

3.3.2 Banks

Bulgarian banks remained stable amid the coronacrisis and posted
solid profits. The country joined the EU’s banking union in 2020, which
was an additional guarantee for the stability of the sector.

The aggregate net profit of Bulgarian commercial banks increased
57.9% y/y to BGN1.2bn (€610mn) in the first ten months of 2021,
according to Bulgarian National Bak (BNB) data.

Through October, the liquidity coverage ratio was 313.5% compared to
281.9% at the end of September. The liquidity buffer stood at
BGN33.4bn.

The net stable funding ratio (NSFR), applied since June28, 2021, was
BGN103.7bn as of end-September, and the required stable funding (the
denominator of the NSFR) was BGN63.6bn. The net stable funding

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