In the first half of 2022, the total assets of credit institutions increased by 24.2 billion kuna (4.8%) compared to the end of 2021, amounting to 525.1 billion kuna.
The increase in total loans and advances by 4.4% and the decrease in non-performing loans (NPL) by 8.0% resulted in a further reduction in the share of NPLs in total loans, from 4.3% at the end of 2021 to 3.8% at the end of the first half of 2022. NPLs also decreased in the portfolio of loans to non-financial companies (a decrease in the share of NPLs from 9.9% to 7.8%) and in the portfolio of loans to households (a decrease in the share of NPLs from 6.6% to 6.1%).
The operations of credit institutions in the first half of 2022 resulted in a profit of 3.1 billion kuna. The return on assets (ROA) was 1.2%, the same as at the end of 2021, while the return on equity (ROE) increased from 8.8% to 9.5%.
Although the key indicators of the capitalization of the banking system in the first half of 2022 remained at high levels, the total capital ratio of the banking system slightly decreased compared to the end of 2021, from 25.9% to 25.0%. All credit institutions had a total capital ratio above the prescribed minimum of 8%.
The liquidity of the credit institutions system, measured by the liquidity coverage ratio (LCR), remained at a high level. At the end of June 2022, all credit institutions met the prescribed minimum liquidity requirements, with an average LCR of 187.1%.
Two housing savings banks, PBZ Housing Savings Bank d.d. and Raiffeisen Housing Savings Bank d.d., were merged with their parent companies, Privredna banka Zagreb d.d. and Raiffeisenbank Austria d.d., respectively, reducing the number of credit institutions to twenty-one.
