In 2021, ZABA recorded a decrease of net interest income of 8.2% and an increase of net profit of 49.3% YoY.
In 2021, ZABA’s net interest income amounted to HRK 2.82bn, a decrease of HRK 253m (or -8.2%) YoY, mainly due to lower net interest margins, due to market developments. Net fee and commission income amounted to HRK 1.37bn, an increase of HRK 99m (or +7.8%). Net trading and other income and expenses amounted to HRK 519m, an increase of HRK 67m (or +14.8%), due to higher trading results.
Net banking income amounted to HRK 4.71bn, a decrease of HRK 87m (or -1.8% YoY). Within the net banking income, the largest increase was seen in gains on financial assets and liabilities held for trading, which increased by HRK 348.1m (or 203.1%), while the largest relative decrease was experienced on FX differences, which went from positive HRK 70.1m to a negative HRK -252.3m.
Operating expenses stayed at roughly the same level YoY, amounting to HRK 2.23bn. Impairment and other provisions amounted to HRK 505m, a decrease of HRK 643m (or 56%) YoY, mainly due to higher impairment losses in 2020 following the outbreak of COVID-19. Because of this, profit from operations amounted to HRK 1.82bn, an increase of 54.8% YoY. All of this led to a net profit of HRK 1.49bn, an increase of 49.3% YoY.
Looking over to the balance sheet, total assets amounted to HRK 158.5bn, an increase of HRK 8.65bn (or 5.8%) YoY. This increase was mainly driven by an increase in Cash, cash balances at central banks, and other demand deposits, which grew by HRK 5.17bn or 15.4% YoY, and financial assets at amortized cost, which increased by HRK 1.69bn or 1.8% YoY. Loans and advances to customers, which have the largest share of total assets at 51.5%, remained at the same level YoY.
On the flip side, total liabilities amounted to HRK 137.2bn, an increase of 7.21bn or 5.5%. This increase was mainly driven by an increase in deposits from customers, which increased by HRK 10.2bn (or +8.7%) and amounted to HRK 127.4bn. At the same time, however, this increase was offset by a decrease in deposits from credit institutions, which declined to HRK 5.01bn, a decrease of HRK 3.56bn or 41.6% YoY. This decline was mainly due to the repayment of intragroup funding and lower placements from other banks. This would amount to a L/D ratio of 64.1%, a decrease of 5.3 p.p. YoY.
ZABA Key Financials (HRKm)
