Group Zagreb Bank’s Profit Decreased by 9.2 Percent

The net profit of the Group Zagreb Bank after taxation in 2009 amounts to 1.39 billion kuna, according to the unaudited financial reports of Zagreb Bank published on the Zagreb Stock Exchange.

Compared to the previous year, profit decreased by 142 million kuna or 9.2 percent primarily as a result of increased costs of value adjustments, the management report states. It adds that the profit from operations before value adjustments and provisions for losses amounts to 2.35 billion kuna or 8.3 percent more compared to 2008, as a result of efficient cost management.

Zagreb Bank d.d. itself achieved a net profit of 1.21 billion kuna in 2009 according to unaudited data. Compared to the same period of the previous year, profit decreased by 178 million kuna or 12.8 percent primarily as a result of increased costs of value adjustments. The profit of ZABA from operations before value adjustments and provisions for losses amounts to 2.07 billion kuna or 6.85 percent more compared to the previous year. The total income of the Group Zagreb Bank in 2009 was 5.01 billion kuna and decreased by 27 million kuna or 0.5 percent compared to the previous year.

Net interest income amounts to 2.83 billion kuna and is 118 million kuna or 4 percent lower compared to the previous year. Net income from fees and commissions was achieved in the amount of 1.08 billion kuna and compared to the previous year decreased by 63 million kuna or 5.5 percent as a result of reduced trading volume in financial markets, reduced fees for foreign payment transactions, and fees for card transactions.

At the same time, net profit from trading and other income amounted to 1.09 billion kuna, which is 154 million kuna or 16.3 percent more compared to the same period of the previous year. The total operating expenses of the Group last year amounted to 2.66 billion kuna and were reduced by 207 million kuna or 7.2 percent. For value adjustment and provisioning costs, the Group allocated 644 million kuna. Net loans to clients amount to 68.6 billion kuna and increased by 2.3 billion kuna compared to the end of the previous year.

At the same time, net loans to legal entities including the state increased by 3.4 billion kuna, while net loans to the population are slightly lower compared to the end of the previous year. Client deposits amount to 64.1 billion kuna and compared to the end of the previous year are higher by 1.3 billion kuna. The Group’s capital and reserves amount to 15.7 billion kuna. The Group’s assets amount to 108 billion kuna and increased by 3.8 percent compared to the end of 2008.  (H)