Zagrebačka štedbanka, one of the few domestic banks fully owned by Croatian private capital, recorded excellent business results in the past year. For example, in 2006, it achieved a gross profit of as much as 54 million kuna, which is an 82% increase compared to the previous year.
Although bank rankings have not yet been compiled, analysts emphasize that Štedbanka, with last year’s record gross profit per employee (there are only about 30 permanent employees) of as much as 1.8 million kuna, is certainly the most profitable bank in Croatia. Last year’s income results are the result, they say at the bank, of significant increases in both net interest and non-interest income as well as cost savings in operations. For instance, net interest income alone increased by 34% last year, reaching 46.5 million kuna.
The bank also recorded significant growth in lending, primarily to small and medium-sized enterprises. By the end of December, its total loans reached 670 million kuna, marking a 30% increase in total lending over the year. – Such exceptionally good results were achieved primarily by utilizing primary sources of funds (which are also the cheapest sources of funds for any bank lending), while simultaneously meeting the criteria for kuna and foreign currency liquidity, high capital adequacy, and appropriate risk loan coverage – says Ante Babić, the bank’s CEO. Meanwhile, the total assets of Štedbanka increased by 21% last year, reaching nearly 1.08 billion kuna. (Nikola Prskalo)
