Central Bank data show that, in the first nine months of 2017, Croatian banks managed to achieve a total pre-tax profit of Kn 2,63 billion. This is 47% down from Kn 4.96 billion in the same period of 2016. Biggest factor in this decline were risks related to Agrokor and its companies, which caused the banks to increase reservations.
Last year, seven out of twenty seven banks recorded a loss. This year, the number of losing banks grew to 13 out of twenty six that operate in Croatia in 2017.
The smallest loss was recorded by the HPB (Croatian Postal Bank) – a mere Kn 109,000. But last year the HPB showed a pre-tax profit of Kn 146.4 million. The Bank stated that the loss is mainly “a result of the deteriorating standing of Agrokor and shows the losses from the Bank’s exposure to those companies”.
Splitska Bank showed the biggest loss, Kn -76.46 million, compared to last year’s profit of Kn 390.2 million. Splitska also changed owners in the meantime, as the Societe Generale sold it to the OTP group. The sale came through in May this year.
On the other side of the spectrum, Privredna showed the biggest profit before tax, Kn 916.7 million, also 27% down from last year. Erste came second, with Kn 700.4 million, down 10.5% from the year before, and ZaBa, usually the leader of the pack, came third with Kn 601.2 million before tax. For ZaBa, this is a 57.2% drop compared to 2016.
Raiffeisen was fourth, with Kn 339.24 million before tax, down 13.1%. followed by Addiko Bank with Kn 123.1 million, -53.8% less than the year before.
Five housing savings institutions made a total of Kn 52.98 million in total profit, 10.2% up from the year before.