Zaba last year with 13 percent lower profit

The Zagrebačka banka Group ended the last year with a net profit of 1.29 billion kuna, which is 13 percent less compared to 2011, while Zagrebačka banka itself achieved a profit after taxation of 925 million kuna, or 29.7 percent less than the previous year, due to reduced net interest income and increased provisioning costs.

This is shown by the unaudited consolidated data of the Zagrebačka banka Group published today on the Zagreb Stock Exchange.

Despite the recessionary and complex business environment, the consolidated report for the Zaba Group states that the group’s operating profit, before value adjustments and provisions for losses, amounts to 2.7 billion kuna, which is 10 million kuna or 0.4 percent less compared to 2011.

The prolonged recession negatively affects revenues, loan volumes, and the net provisioning costs of the Group. The slowed implementation of regulations aimed at addressing the issues of companies facing operational difficulties and the lack of fresh equity necessary for the financial restructuring of companies affects the further increase in provisioning costs, Zaba states.

In order to reasonably mitigate the effects of the unfavorable business environment, the Group is continuously focused on further improving cost and process efficiency, which, along with a focus on maintaining the quality of the loan portfolio, resulted in achieving solid financial results.

Thus, the Group’s operating revenues amount to 5.28 million kuna and have decreased by 2.4 percent, while total operating costs fell by 4.4 percent, to 2.56 billion kuna.

The operating revenues of Zagrebačka banka d.d. simultaneously fell by 6.3 percent, to 3.97 billion kuna, while total operating costs decreased by 7.4 percent, to 1.6 billion kuna.

The decrease in the bank’s operating revenues is primarily the result of lower net interest income, which amounted to 2.6 billion kuna, which is 338 million kuna or 11.4 percent less compared to 2011.

The net income of Zagrebačka banka from fees and commissions has decreased by 12 million kuna or 1.4 percent and amounts to 847 million kuna.

In addition to Zagrebačka banka, the Zaba group also includes UniCredit Bank from Mostar and Zane BH from Sarajevo, as well as Croatian companies Prva stambena štedionica, ZB Invest, Centar Kaptol, Pominvest, Suvremene poslovne komunikacije, Zagreb nekretnine, Multiplus card, Allianz ZB, and Istraturist and Istra D.M.C from Umag.