ZABA ends 2015 with loss of HRK 519mn

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)

Last update: Mon, 29/02/2016 - 19:23
Author: 

Related

PBZ nets HRK 193.2m in profits

Business

Monday, February 29, 2016 - 17:03

More from Business

Belgrade Stock Exchange joins SEE Link

The Belgrade Stock Exchange (BELEX) has been connected to the South-East European Link, a project started by...

European investors shrug at Renzi resignation after failed referendum

 European markets on Monday shrugged off this weekend's failed constitutional reform referendum in Italy.

US unemployment rate dips to 9-year low

The US unemployment rate fell in November to 4.6 per cent, a nine-year low, the Bureau of Labour Statistics said...

Chinese firm building full-size Titanic replica for tourists

Construction has begun on the world's first full-size replica of the Titanic in China, a country that fell in love...

Erdogan calls on Turks to sell dollars and buy lira and gold

President Recep Tayyip Erdogan urged Turkish citizens on Friday to sell their dollars and buy gold and lira, as the...