The Zagrebačka banka Group recorded a loss after tax of nearly 400 million kuna in the first nine months of this year, due to reserves for the expected cost of loans in Swiss francs amounting to nearly 1.75 billion kuna, according to data from Zaba’s financial report published today.
According to unaudited consolidated financial statements, the Zagrebačka banka Group incurred a loss after tax of 396 million kuna in the first nine months of 2015, while the profit achieved in the same period of 2014 amounted to 1.09 billion kuna.
The reported result was significantly affected by the application of the provisions of the amendments to the Consumer Credit Act from September 2015, which regulate the principle of converting loans in Swiss francs and kuna loans with a currency clause in francs into euro loans and kuna loans with a currency clause in euros, Zaba states, adding that the estimated costs of converting these loans amount to more than 1.74 billion kuna.
They also add that the net trading result is negatively impacted by the appreciation of the Swiss franc against the kuna, and by the application of the law amending the Consumer Credit Act from January of this year, which fixed the exchange rate of the franc to the kuna at a level of 6.39 kuna for a period of one year.
– Reservation costs remain significant in an economic environment that shows only slight signs of recovery, but even under such circumstances, the operational result achieved is stable, and excluding the aforementioned effects of regulatory provisions related to loans in Swiss francs, the nine-month result of the Group would be positive – Zaba states.
