Bank loans

The share of non-performing loans in total bank loans continues to fall

During its session today, the Board of the National Bank of Croatia reviewed current economic and financial developments and adopted several decisions on issues within its competence.

Total assets of credit institutions increased by HRK 30.5 billion (6.6%) at the end of the third quarter of 2021 compared to the end of 2020, to stand at HRK 493 billion. Loans and advances recorded the strongest growth. Cash balances also continued to grow at a high rate.

As a result, and a continued decline in non-performing loans from non-financial corporations, the quality of total exposure continued to improve and the share of NPLs in total loans fell from 5.4% to 4.7 %. NPLs in the household loan portfolio increased, but new credit activity compensated for this increase, so that the share of NPLs in the household sector remained at 7.1%. The share of loans in stage 2, which are not yet in default, but which are estimated to experience a significant increase in credit risk, remained high.

In the first nine months of 2021, credit institutions reported a current profit of HRK 4.0 billion, which is HRK 1.5 billion (59.3%) more than in the same period of the year. last year. The increase in profit is the result of a considerable reduction in impairments for credit losses and, to a lesser extent, an increase in net operating income. Profitability indicators thus improved compared to the comparable period: the return on assets (ROA) went from 0.8% to 1.1% and the return on equity (ROE) went from 5.5% to 8.3%. All credit institutions reported profits.

Growth in highly liquid assets boosted liquidity in the system, with the LCR standing at 206.9%. Due to the absence of risky investments and the maintenance of the level of total capital, the capital adequacy indicators remained very high – the total capital ratio of the banking system stood at 25.6%.

The CNB Council gave its approval to the Supervisory Board of PBZ stambena štedionica dd for the appointment of Branimir Ćosić as Chairman of the Management Board of PBZ stambena štedionica dd and for the appointment of Dražen Klarić as Member of the Management Board of PBZ stambena štedionica dd The Board also gave its approval to the Supervisory Board of Agram Banka for the appointment of Boris Zadro as Chairman of the Management Board of Agram Banka dd and for the appointment of Nataša Jakić Felić as Member of the Management Board of the bank.

The CNB Board issued the decision to initiate compulsory liquidation against Internet Mobile Bank dd subject to liquidation proceedings and the decision to put into circulation kuna and lipa coins with the year of issue 2022.

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Croatian National Bank published this content on January 26, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on January 27, 2022 14:28:11 UTC.