PBZ generated 3.85 billion kuna in interest

The profit after taxation of the Privredna banka Zagreb Group at the end of 2012 amounted to 1.01 billion kuna, which is 20 percent less than the profit achieved in the previous year, while the net profit of Privredna banka Zagreb itself amounts to 845.6 million kuna or 25.6 percent less than in 2011, according to the unaudited consolidated report published today on the Zagreb Stock Exchange.

The decrease in profit was primarily influenced by costs for value adjustments and provisions for losses aimed at providing additional protection for the disbursed loans.

The report highlights that PBZ Group adequately manages the risks to which it is exposed, particularly credit risk, which enables it to timely anticipate all significant changes in the portfolio and thus allocate an adequate level of provisions to cover losses.

During 2012, PBZ Group allocated 589.4 million kuna for value adjustments and provisions for losses, which is 220.8 million kuna or 59.9 percent more than in 2011. The increase in these costs, it is emphasized, primarily reflects the challenging macroeconomic conditions in the country, high unemployment rates, and lower real income of the population.

Other members of PBZ Group also ended the past year with a profit, with Međimurska banka’s profit (before merging with PBZ on December 1) amounting to 33.4 million kuna, PBZ Card’s 219.5 million kuna, PBZ Housing Savings Bank’s 15.9 million kuna, and PBZ Invest’s 5.7 million kuna. PBZ Leasing achieved a net profit of 14.5 million kuna, PBZ Croatia Insurance 14.8 million kuna, and Intesa Sanpaolo Card 26.8 million kuna.

In the past year, PBZ Group generated interest income of 3.85 billion kuna, which is 2.14 percent less than the previous year, due to a relatively lower level of aggregate demand for loans. The net income from fees and commissions of PBZ Group decreased by 1.96 percent to 1.08 billion kuna.

Privredna banka Zagreb itself recorded a decrease in interest income of 1.3 percent to 3.55 billion kuna and a decline in net income from fees and commissions of 0.7 percent to 506 million kuna.