Croatian Postal Bank (HPB) concluded the first half of this year with a profit of 54 million kuna after taxation, in contrast to the same period last year when it recorded a loss of 85.4 million kuna, according to the financial report of the bank published on the Zagreb Stock Exchange.
Highlighting in the notes to the Report that HPB achieved an operating profit before provisions for losses of 112.2 million kuna in the first half of this year, the bank’s management adds that this profit in the same period last year amounted to 8 million kuna. For provisions for losses in the first six months of this year, they allocated 58.2 million kuna, with 24.6 million kuna set aside in the second quarter of this year, resulting in a profit after taxation of the stated 54 million kuna. They also add that due to lower interest costs on funding sources, net interest income at the end of June this year was 12.4 percent higher compared to the same period last year.
For the positive trend in net interest income, they emphasize that it was not disrupted by the decrease in interest income this year due to a lower base of net placements as a result of allocated provisions for losses. Net income from fees and commissions amounted to 102.7 million kuna, which is 25.9 percent higher than the previous year, with this increase explained by the slight rise in commission income from guarantees and letters of credit, as well as a reduction in total costs from fees and commissions from payment transactions. General and administrative expenses, as they state, have been reduced by 20.9 percent compared to the same period last year through restrictive management.
