Zagrebacka Banka (ZABA) ended 2015 with a net loss of HRK 519 million due to the costs of conversion of CHF loans in the amount of HRK 1.56 billion, the bank said in its annual financial statement on Monday.
By comparison, in 2014 ZABA posted a profit of 1.16 billion. It said that if the effects of the legal provisions concerning CHF loans were excluded, its result for 2015 would have been positive.
Last year ZABA set aside HRK 2.64 billion for the costs of value adjustments and credit loss provisions, which was nearly 160 percent more than in 2014. Excluding the provisions for the costs of loan conversion, the increase in the costs of value adjustments and loss provisioning would have been HRK 64 million, or 6.3 percent.
The bank's operating income was HRK 3.83 billion, down 8.3 percent from 2014; interest income increased by 3 percent to HRK 2.6 billion, and commission and fee income rose by 4.4 percent to HRK 944 million.
Net profit from trading and other income reached HRK 254 million, down 64.6 percent in comparison with 2014, partly due to the one-off effect of the sale of the Istraturist hotel company.
Total operating expense was HRK 1.85 billion, up 10 percent in comparison with 2014, mostly due to the cost of contributions to the Resolution Fund, higher costs of administrative and marketing services, and employee expenses.
The Zagrebacka Banka Group also posted a negative result for 2015. It lost HRK 148 million, following a net profit of HRK 1.14 billion in 2014.
(EUR 1 = HRK 7.62)