In 2020, ZABA recorded a decrease in net banking income of 12.1% and a decrease in net profit to majority of 42.9%

In 2020 ZABA’s net interest income amounted to HRK 3.07bn, representing a decrease of 11.2%, or HRK 386m. The company attributes such a high decrease mostly to a continued pressure on NIM. Net fee and commission income stood at HRK 1.27bn, representing a decrease of HRK 116m or 8.4%.

Meanwhile, net banking income stood at HRK 4.54bn, representing a decrease of 12.1%. Within the net banking income, ZABA noted a decrease in gain on financial assets held for trading of 54.6% or HRK 205.8m. Meanwhile, the bank recorded a loss on financial assets measured at fair value through P&L of HRK -98.2m, compared to HRK 166.4m in 2019.

Operating expenses amounted to HRK 2.2bn, representing a decrease of 2.8% or HRK 63m. Such a decrease was due to lower administration costs and depreciation.

Looking at value adjustments and provisions for losses, they amounted to HRK 1,148m, which were observed due to the growth of credit risk following the COVID-19 pandemic. As a result, the bank recorded a sharp decrease in net profit to majority of 42.9%, to HRK 1bn.

Turning our attention to the balance sheet, total assets amounted to HRK 149.85bn, representing an increase of 2.9% YoY. Of that, loans to customers account for 54.6% or HRK 81.83bn, representing a decrease of 1.5bn or 2% YoY. Such a decrease could be attributed to slowed credit activity during the pandemic. On the flip side, deposits from customers amounted to HRK 117.21bn, representing an increase of 3.4%, in line with banking trends in the region. Such a result puts the L/D ratio at 69.4%.