HPB Bank 2018 Preliminary Results

In 2018, HPB recorded an increase in net interest income of 2.6%, an increase in net fee and commission income of 6.1% and a net profit of HRK 126.2m.

We are bringing you some key takes from HPB’s 2018 preliminary report. According to it, in 2018, HPB recorded an increase in net interest income of 2.6% YoY, amounting to HRK 551.4m. The rise could be attributed to a decline in interest expense of 20.7%. Further, net fee and commission income increased by 6.1%, amounting to HRK 218.6m.

However, when observing operating profit, it decreased by 18.3% YoY. Such a decrease could be attributed to an increase in general and administrative expenses, amortization and depreciation, which increased by HRK 67m (+17%).

In 2017, HPB also recorded high impairment losses and provisions, resulting in a low net income of HRK 7.9m. In 2018, impairment losses and provisions decreased by HRK 215m in 2018. This led to a steep increase in net income by HRK 118.3m, compared to 2017, which amounted to HRK 126.2m (+1498.8%)

HPB Performance (2015 – 2018) (HRK m)

Net profit is mainly consisted of parent-company result, apart from, HPB Invest recorded a net profit of HRK 0.9m, HPB-nekretnine added a net profit of HRK 0.9m. According to the relatively adverse effects from capital markets continued in fourth quarter, HPB-Stambena štedionica recorded a net loss amounting to HRK 4.1m, despite increasing volume and contribution of core operations to overall result.

Following the acquisition of Jadranska banka d.d. during July 2018, the Bank includes its results to the HPB Group results. In a period from July to December 2018 Jadranska banka d.d. realized a loss of HRK 21.6m.

 L/D Ratio (2015 – 2018) (%)

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