Zaba Achieved a Profit of 450 Million Euros Last Year, 89.1 Percent Higher Than in 2022

Zagrebačka banka (Zaba) achieved a post-tax profit of 450 million euros in 2023, which is an increase of 212 million euros or 89.1 percent compared to the previous year, according to the financial report published by the bank on Monday.

– We have achieved excellent results and confirmed healthy growth in all key business segments and a leading position in the market. Business revenues have increased, and cost management is disciplined. The capital and liquidity position is strong, and assets are sufficiently covered by loan provisions – it is highlighted in the unaudited, unconsolidated financial report for the previous year published on the Zagreb Stock Exchange.

Zaba’s business revenues last year amounted to 787 million euros, which is an increase of 199 million euros or 33.8 percent compared to 2022.

At the same time, net interest income amounted to 577 million euros, an increase of 264 million euros or 84.3 percent, while net fee and commission income reached 166 million euros, an increase of five million euros or 3.1 percent compared to the previous year.

Net trading income and other revenues and expenses amounted to 44 million euros, down by 70 million euros or 61.4 percent, mainly due to lower dividend income and trading profits, Zaba explains.

Operating expenses in 2023 amounted to 235 million euros, which is an annual increase of three million euros or 1.3 percent, with a cost-to-income ratio of 29.86 percent. Profit from operations before value adjustments and provisions for losses last year amounted to 544 million euros, an increase of 197 million euros or 56.8 percent.

Provisions for value adjustments and losses recorded a release of one million euros, with a year-on-year decrease of 66 million euros. Furthermore, as stated in the report, the bank’s assets amount to 20.37 billion euros, an increase of 406 million euros or two percent.

Net loans and advances to clients amount to 10.3 billion euros, an increase of 657 million euros or 6.8 percent, achieved from loans to legal entities and individuals.

Client deposits are the primary source of funding, amounting to 17 billion euros. An increase of 759 million euros or 4.7 percent was achieved mainly in deposits from legal entities and individuals.

Finally, deposits from credit institutions amount to 205 million euros, down by 279 million euros or 57.6 percent, Zaba reported.

Zagreb Bank Group with a Net Profit Growth of 105.2 Percent

According to the consolidated, unaudited financial report, the Zagreb Bank Group achieved a post-tax profit of 509 million euros last year, which is an increase of 261 million euros or 105.2 percent compared to 2022.

The result of the Group, as stated, was primarily contributed by Zagrebačka banka d.d., UniCredit Bank d.d. Mostar, and UniCredit Leasing Croatia d.o.o.

The business revenues of the Zagreb Bank Group last year amounted to 959 million euros, an increase of 258 million euros or 36.8 percent compared to the previous year, while operating expenses amounted to 333 million euros, an increase of 12 million euros or 3.7 percent.

Net interest income amounted to 688 million euros, an increase of 283 million euros or 69.9 percent, net fee and commission income reached 217 million euros, which is an annual increase of ten million euros or 4.8 percent, while net trading income and other revenues and expenses amounted to 54 million euros, a decrease of 35 million euros or 39.3 percent, according to the report.