In 2018, PBZ observed a decrease in net interest fees of 3% YoY, an increase in net fee and commission income of 4.7% and an increase in net income of 28%.

As PBZ published their 2018 preliminary results, we are bringing you some key takes from it. Note that their result for 2018 includes also the result of Veneto Banka which was consolidated to PBZ after the acquisition. According to the report, net interest fees amounted to HRK 2.8bn, which represents a 3% decrease YoY. The Group explains the decrease with the constant trend of lowered active and passive interest rates.

Furthermore, the company’s net fee and commission income it amounted to HRK 1.6bn, which is a 4.7% increase YoY.

When observing operations with securities and other financial instruments, including profit/loss from FX result the Group observed a positive net financial result of HRK 386m. Next, administrative expenses coupled with other operating expenses increased by 4%, amounting to HRK 2.5bn.

In 2018, PBZ also observed a decrease in value adjustments and provisions of 40%, which boosted the result by another HRK 459.2m. Such a decrease lead to higher earnings before tax which amounted HRK 1.9bn, which represents an increase of 15% YoY. Further, net income amounted to HRK 1.7bn, which is an increase of 28%.  

PBZ Performance (2015 – 2018) (HRK m)

Also, the Group proposed a dividend of HRK 72.58 per share, which is based on their results achieved in 2018. At the current share price, that would make the dividend yield of 10%. Note that this would be the highest yield in the observed period. The ex-dividend date will be on 11 April 2019, while the dividend would be paid out on 18 April 2019.

PBZ Dividend Yield (2013 – 2019) (%)

*compared to the share price a day before the dividend proposal