Privredna banka Zagreb (PBZ) achieved a net profit of 183 million kuna in the first quarter of this year, which is a 2.1 percent increase compared to the same period last year, according to the quarterly financial report of PBZ published on the Zagreb Stock Exchange.
According to these data, PBZ recorded a 7.7 percent increase in net interest income, amounting to 462.3 million kuna. Total interest income of 845.7 million kuna is 157.1 million kuna, or 15.7 percent lower than in the first quarter of last year. Total interest expenses also decreased by 33.1 percent, to 383.4 million kuna, which is 190 million kuna less than in the first quarter of 2009. The reduction in expenses is most evident in interest expenses to financial institutions, which decreased by 74.8 percent. According to the report, net income from fees and commissions amounting to 113.2 million kuna is higher by 13.8 million kuna, or 13.9 percent.
PBZ emphasizes that the reduced liquidity of the Croatian economy has also affected the increase in provisions for losses, which amount to 74.6 million kuna, representing a 10.4 percent increase compared to the first quarter of last year. PBZ’s assets at the end of the first quarter of this year amounted to 61.9 billion kuna, a decrease of 4 percent compared to the end of last year. The largest segment of assets consists of loans to clients, accounting for 68.2 percent (42.2 billion kuna). The bank recorded a 6.2 percent decline in total deposits in the first three months of this year, solely due to a decrease in deposits from banks and financial institutions, while other client deposits recorded a slight increase, PBZ reports.
