09.09.2016Municipal Bank increases its capital with over 11 per cent

The General Meeting of Municipal Bank’s shareholders decided to capitalize the profit for the financial year 2015. Thus the share capital increases with over 11 per cent.

New 576 784 book entry ordinary shares with voting right will be issued, each with a nominal value of 10 Levs and equal to 5 767 840 Levs, all divided between the shareholders in proportion to their shareholding participation prior to the increase.

During the previous years the General Meeting of Municipal Bank has also taken the decision of increasing its capital – through capitalization of retained earnings. After today’s decision, the Bank’s Capital Adequacy Ratio will be raised with around 2% and will reach nearly 20%.

"The improvement of the capital adequacy will allow the financial institution to be even more successful and stable on the market and to achieve its strategic goals. In the municipalities, which the Bank serves, lives more than 34% of the population of Bulgaria. Therefore, we strive to offer more interesting services and innovative products to our customers" said Sasho Tchakalski, Chairman of the Management Board and Executive Director of Municipal Bank.

This year Municipal Bank celebrates its 20th anniversary. During that period of time, the Bank established itself as a leader in lending to municipalities. As of 31 July 2016 the market share for the service of municipal deposits is 37.29% and for the municipal lending -17%. The Bank holds strong positions in other segments and also reports a significant growth in corporate banking and in the retail lending. The development of the Bank is rated high by rating agencies. Recently, Moody's confirmed the rating of the Bank for 2015 - deposit rating B1 - stable outlook and counterparty risk assessment Ba2. Municipal Bank has a developed branch network with 83 locations in 25 districts and 50 settlements in the country.