Croatian Banks Report €806.8 Million Profit in First Half of 2024
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Loading... - Leopold Becker
- 04 Sep 2024
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Croatian banks reported a substantial profit increase in the first half of 2024, earning a total of €806.8 million. This marks a 14.6% rise compared to the same period in 2023, according to data from the Croatian National Bank (HNB).
Top Performers
- Zagrebačka Banka led the profit charts with €257.1 million, an 18.3% increase from the previous year.
- Privredna Banka Zagreb (PBZ) posted a profit of €186.9 million, up by 19.8%.
- Erste&Steiermärkische Bank secured third place with €119.2 million, showing a slight increase compared to last year.
- OTP Bank and Raiffeisenbank Austria also performed well, with profits of €81.1 million and €63.7 million, respectively.
- Hrvatska Poštanska Banka (HPB), the largest state-owned bank, reported a profit of €45.1 million, marking a 6.4% increase.
Key Financial Indicators
- The profitability indicators showed improvement, with the return on assets (ROA) rising to 2.1% from 1.8% at the end of 2023, and the return on equity (ROE) increasing to 18.2% from 15.5%.
- The banking sector's capital ratio, although slightly decreased to 22.9% due to higher risk exposure, remains well above the regulatory minimum of 8%.
- The liquidity coverage ratio (LCR) of the banking system stood at a robust 220.2%, with all credit institutions meeting the required liquidity standards.
Asset Overview
- Total assets of credit institutions saw a slight decline of 0.6% from the end of 2023, amounting to €78.1 billion.
- Loans and advances remained stable with a minimal growth of 0.1%, while non-performing loans (NPLs) decreased by 1.9%, reflecting improved loan quality, particularly in loans to non-financial corporations and households.
The Croatian banking sector continues to demonstrate resilience and profitability, buoyed by increased interest income and stable financial performance across major institutions.
