In Q1 2019, the company recorded an increase in net interest income of 6.3%, increase in net fees and commisions of 16.5% and an increase in net income of 14.5%.

As ZABA published their Q1 2019 report, we are bringing you key takes from it. According to the report, the company observed an increase of 6.3% in net interest income, amounting to HRK 883.9m. The increase came as a result of stable average credit volume and lower financing costs.

Further, net fee and commission income amounted to HRK 377.4m, which represents an increase of 16.5%. Such an increase could be attributed to a rise in asset management fees and investment banking fees. Meanwhile, net banking fees recorded an increase of 13.8%, amounting to HRK 1.35bn.

Going further down the P&L, value adjustments and provisions amounted to HRK 139m, which represents an increase of 73.8%. In Q1, net income amounted to HRK 537.3m, which represents an increase of 14.5%.

Turning our attention to loans and deposits, ZABA observed a slight increase in loans to customers of 0.3% which amounted to HRK 81.8bn. Deposits to customers, on the other hand, increased by 2.4%, amounting to HRK 104.9bn. Consequently, the company observed a decrease in L/D ratio of 1.6 p.p. which now stands at 77.9%.

The total assets of the company amounted to HRK 141.7bn, which represents an increase of 2.3% YoY. The increase could be attributed to a rise in cash, loans to customers and financial assets measured at fair value through other comprehensive income.

ZABA Performance (Q1 2019 vs Q1 2018)

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