HBOR Achieved 205 Million Kuna Profit Last Year

In 2015, HBOR achieved total revenues of 917.1 million kuna, expenses of 711.9 million kuna, and a profit of 205.2 million kuna. In accordance with the Law on HBOR, the entire profit realized in 2015 is allocated to reserves.

The Croatian Bank for Reconstruction and Development (HBOR) achieved a profit of 205.2 million kuna last year, which is almost 37 million kuna more than the profit from the previous year, resulting from lower operating costs, lower interest expenses, higher net income from fees, and net income from exchange rate differences and changes in fair value, HBOR announced on Tuesday.

In 2015, HBOR achieved total revenues of 917.1 million kuna, expenses of 711.9 million kuna, and a profit of 205.2 million kuna. In accordance with the Law on HBOR, the entire profit realized in 2015 is allocated to reserves.

The higher profit achievement of 36.9 million kuna is the result of a 14 percent reduction in operating costs, or 22 million kuna, lower interest expenses by 15.6 million kuna, higher net income from fees by 8.8 million kuna, and higher net income from exchange rate differences and changes in fair value by 22.8 million kuna compared to 2014, the bank stated.

They explain that the lower interest expenses were most significantly influenced by the early repayment of certain debts in 2013 and 2014, as well as the use of credit lines from special financial institutions at more favorable interest rates.

Increased guarantee activity, on the other hand, influenced higher income from fees – HBOR approved 2.97 billion kuna in guarantees last year, while in 2014, 173.7 million kuna was approved, the statement notes.

– The good financial indicators are the result of increased business activity of HBOR during 2015. In 2015, HBOR supported 2,589 projects of Croatian entrepreneurs with a total amount of 12.4 billion kuna through lending, securing export receivables, and issuing guarantees, which is double compared to 2014, the bank emphasizes, adding that they significantly increased their lending activity last year.

A total of 7.8 billion kuna in loans was approved, of which 7.3 billion kuna relates to newly approved loans. This involves 2,285 loans, which is 2.5 times more than in 2014. The most active users were small and medium-sized enterprises, accounting for 94 percent of the total number of approved loans.

At the same time, the trend of increasing the share of investment loans continued last year, which reached a share of 82 percent.

Small and medium-sized enterprises were approved 3.2 billion kuna, which is 51 percent more than in 2014.

HBOR notes that new distribution channels, through framework loans with commercial banks and cooperation with leasing companies, as well as the introduction of a new microcredit program with EU support, resulted in increased demand for HBOR’s funds, primarily from small and medium-sized enterprises.

Under the programs for financing projects co-financed from EU funds, HBOR approved 706 million kuna in 2015, which is 53 percent more compared to 2014, and 128 projects were co-financed. Most of them were projects of small and medium-sized enterprises.

Significant growth was also achieved in financing infrastructure projects and environmental protection. Thus, projects ranging from the construction of kindergartens and the renovation of schools to water supply and sewage infrastructure were financed with 2.1 billion kuna.

Investments in tourism amounted to 1.5 billion kuna, which is 28 percent more than in 2014, and these are investments with a total value of 2.3 billion kuna.

– The importance of HBOR’s role as an export bank and export insurance agency is confirmed by the fact that HBOR supported Croatian exporters with 8.64 billion kuna through credit programs, issuing performance guarantees, and securing export receivables during 2015. Projects supported through export insurance were realized in 50 countries worldwide, and the diversity of export projects is indicated by the projects realized with HBOR’s support, including the construction of the largest sailing ship in the world for a customer in Monaco, the construction of the Albania-Kosovo power line, the delivery of a dredger with an excavator for a customer from the Netherlands, the export of pharmaceutical products to the Russian Federation, and the delivery of telecommunications equipment and services to a customer in Cuba, HBOR concludes.