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HNB recorded a net profit of 10.5 million euros last year

The Croatian National Bank (HNB) achieved a profit in 2024 of 10.5 million euros, and by a decision of the HNB Council made on Monday, 8.4 million euros of that amount will be paid into the state budget of the Republic of Croatia, while the remaining amount of 2.1 million euros will be allocated to the bank’s general reserves, the central bank announced.

It is worth noting that the HNB ended the year 2023 ‘at zero’.

The net interest income of the HNB in 2024 amounted to 46.4 million euros. The interest income was generated from managing its own financial assets and based on the remuneration of claims from the Eurosystem, as stated in the announcement published after the HNB Council meeting, where the revised financial statements of the central bank were reviewed.

The largest part of the interest expenses related to interest on overnight deposits of banks with the HNB, which amounted to 532.2 million euros. The amount of accrued interest on state deposits with the HNB was also significant in the past year, amounting to 144.2 million euros, which is 31.5 million euros more than in 2023.

The impact of the pooling of monetary income of the national central banks of the Eurosystem on the HNB in 2024 was negative, with expenses in this regard amounting to 189.8 million euros, according to the HNB. They remind that the national central banks of the Eurosystem pool the income and expenses generated from the implementation of the Eurosystem’s monetary policy. The pooled monetary income is distributed among the national central banks according to the key of subscribed capital, so national central banks may have a liability and expense or a receivable and income depending on whether they pooled more or less monetary income than they are entitled to according to their capital key.

Income from fees for the supervision of credit institutions, which the HNB charges based on the Credit Institutions Act, reached 17.1 million euros in 2024. Among other income, the most significant was the amount of 227.8 million euros recognized in the profit and loss account based on the decision of the HNB Council regarding the estimated amount of kuna banknotes that will not be returned to the Croatian National Bank.

The operating expenses of the Croatian National Bank in 2024 amounted to 110 million euros. Operating expenses include employee costs, administrative expenses, depreciation of tangible and intangible fixed assets, costs of producing banknotes and coins, and other expenses.

At the end of 2024, the Croatian National Bank still has significant protective layers for risks consisting of revaluation accounts, reserves, general reserves, and capital totaling 1.9 billion euros, which is an increase of 0.2 billion euros compared to 1.7 billion euros at the end of 2023, the announcement concludes.