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


At its meeting today, the Council of the Croatian National Bank discussed current economic and financial developments and made several decisions on matters falling within its competence.

The total assets of credit institutions at the end of the third quarter of 2021 increased by HRK 30.5 billion (6.6%) compared to the end of 2020 and stood at HRK 493 billion. Receivables recorded the strongest growth. Cash on hand also continued to rise sharply.

As a result, and a continued decline in non-financial corporations’ non-performing loans, the quality of total exposure continued to improve and the share of non-performing loans in total loans decreased from 5.4% to 4.7%. The number of non-performing loans in the household loan portfolio increased, but new lending activity offset this increase, leaving the non-performing loan share in the household sector at 7.1%. The proportion of Stage 2 loans that have not yet defaulted but are assessed to have a significant increase in credit risk remains high.

In the first nine months of 2021, credit institutions reported running profit of HRK 4.0 billion, which is HRK 1.5 billion (59.3%) more than in the same period last year. The increase in profit was due to significantly lower allowance for credit losses and, to a lesser extent, an increase in net operating income. As a result, the profitability ratios increased compared to the comparative period: the return on assets (ROA) increased from 0.8% to 1.1% and the return on equity (ROE) from 5.5% to 8.3%. All credit institutions reported gains.

The growth of highly liquid assets increased liquidity in the system, with the LCR at 206.9%. Due to the lack of risky investments and the maintained overall capital level, capital adequacy indicators have remained very high – the total capital ratio of the banking system was 25.6%.

The CNB Council gave its approval to the Board of Directors of PBZ stambena štedionica dd to appoint Branimir Ćosić as Chairman of the Board of Directors of PBZ stambena štedionica dd and to appoint Dražen Klarić as a member of the Board of Directors of PBZ stambena štedionica dd The Council also gave its approval to the Board of Directors Agram banka approved the appointment of Boris Zadro as CEO of Agram banka dd and the appointment of Nataša Jakić Felić as a member of the bank’s Management Board.

The CNB Council issued the decision on initiating forced liquidation against Internet Mobile Bank dd, which is in the process of liquidation, and the decision on the release of kuna and lipa coins minted in 2022.


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


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