ZABA Bank 2018 Preliminary Results

In 2018, ZABA observed a decrease of 1.6% in net interest and fees, an increase of 4.7% in net fee and commission income and a 95.5% increase in net income.

As ZABA published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, ZABA recorded operating revenues of HRK 5.6bn, which represents an increase of 5.4% YoY. Of that, net interest fees account for 60.6%, amounting to HRK 3.4bn (-1,6%). The decrease could be attributed to a lower net interest margin.

Furthermore, net fee and commission income amounted to HRK 1.4bn, which is an increase of 4.7%. Such an increase could be explained by a rise in card fees, transaction fees and other fees.

When observing operating expenses, they increased by 2.4%, amounting to HRK 2.6bn. Next, ZABA observed a decrease in value adjustments and provisions of 57.1%, amounting to HRK 646m in 2018. Such a decrease could be attributed to ZABA recording very high provisions in 2017 (+65% compared to 2016), and also a decrease in share of bad credit.

This consequently led to an increase in operating profit of 87.1%, amounting to HRK 2.3bn, while net income amounted to HRK 2bn, representing an increase of 95.5%.

ZABA Performance (2015 – 2018) (HRK m)
Chart
Bar chart with 3 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying . Data ranges from -148 to 3479.
End of interactive chart.

In 2018, the L/D ratio has continued its declining trend and currently amounts to 79%, as deposits have continued to increase (+11% YoY). Loans, on the other hand, have also increased 6% in 2018, but when observing a longer period, they remain flattish.   

Loans & Deposits (2015 – 2018) (HRK m)
Chart
Bar chart with 2 data series.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying . Data ranges from 80739 to 109113.
End of interactive chart.
L/D Ratio (2015 – 2018) (%)
Chart
Line chart with 4 data points.
The chart has 1 X axis displaying .
The chart has 1 Y axis displaying . Data ranges from 79 to 89.
End of interactive chart.
InterCapital
Published
Category : Flash News

Want to invest? Do not know how and where? Contact us and we will solve everything for you.