ZAGREB, February 18, 2018 - Zagrebačka Banka (ZABA), the largest bank in Croatia, generated an operating income of 4.2 billion kuna in 2017, which is 9.1% less than in 2016, while net profit fell by more than 50%, its financial statement shows.
Net profit was 839 million kuna, down 50.9% from 2016. Costs of value adjustments and provisions increased by 86% or 665 million kuna to 1.4 billion kuna, mostly due to increased costs of value adjustments of corporate loans.
The bank said it had achieved a good financial result thanks to the stable result of operating business and efficient cost management.
The capital adequacy rate was 27.75%, a solid potential to support credit activity in the time ahead, according to the statement.
Net income from commissions and fees rose by 5.9% to 1.045 billion kuna, while net profit from trading and other incomes fell by 50% to 475 million kuna. Operating costs went up by 1.7% to 1.8 billion kuna.
The bank's assets declined by 2.8% to 102 billion kuna, mostly due to optimisation of financing sources.
The total volume of loans issued shrank by 5.7% to 61.8 billion kuna due to the sale of a portion of the non-performing portfolio and public sector deleveraging. Positive trends were observed in loans to retail customers, and deposits rose by 1.6% to 77.5 billion kuna, according to the statement.
