First of all, Q1 2023 represents the best quarter in HPB’s history. HPB Group recorded a net interest income of EUR 34.7m (more than 2x YoY), net fee and commission income amounted to EUR 7.7m (from EUR 5.8m), op. income more than doubled, and a net profit of EUR 20.3m, an increase of almost 5x. Consequently, HPB’s share price rose 6.1% after yesterday’s trading session.

First, we note that 2022 was marked as the best year on record for HPB Group, supported by solid organic growth, but also by the acquisition of Sberbank’s subsidiary in Croatia (renamed Nova hrvatska banka) back in April 2022, which due to the circumstances of the agreement, boosted the bottom line significantly.

Coming back to Q1 2023, the same trend continues. Net interest income more than doubled on a YoY basis and amounted to EUR 34.7m. However, net interest income also grew by as much as 19.1% compared to the previous quarter. This growth came due to the increase in the reference risk-free interest rates of the ECB, as well as the effective management of interest costs. Net fee and commission income amounted to EUR 7.7m, an increase of 26% YoY, or EUR 1.6m. Consequently, the cost-to-income ratio improved significantly.

Together, this resulted in more than doubling of operating income, which amounted to EUR 42.5m (from EUR 20.4m). Moving on to operating expenses, it amounted to EUR 25.3m, an increase of 54.3% YoY. The biggest share in OPEX are Employee expenses of EUR 12.1m and Administrative expenses of EUR 10m, which combined make up the majority of OPEX (c. 90%). Here we can see both the inflationary pressures, but also the costs of integration of Nova hrvatska banka.  Due to the higher amount of assets received after the acquisition, amortization also increased, growing by c. 50% and amounting to EUR 3.6m.

HPB also recorded a decrease in provisions, which decreased from EUR 0.6m to EUR -6m, which had a positive influence on net profit to further amplify a better operating result. As s result of everything mentioned, the net profit after tax of the Group amounted to EUR 20.3m, an increase of almost 5x YoY. This came as a result of the aforementioned operating profitability, along with high-quality credit portfolio management.

Finally, looking at the balance sheet in Q1 2023, total assets are at the 2022 level and in line with market trends after the introduction of the euro. HPB noted an increase in securities due to the purchase of government bonds. Finally, Capital adequacy at the consolidated level stands at 19.1%.

HPB key financials (Q1 2022 vs. Q1 2023, EURm)

Source: HPB, InterCapital Research

At the share price before the announcement, this would amount to a DY of 3.7% for the ordinary, and 4.1% for the preferred shares. The ex-date is set for 26 June 2023.

Yesterday, Adris Grupa publishes the GSM call, in which the proposal of the MB and SB for the distribution of profit was made. According to the release, a dividend proposal of EUR 2.35 DPS was made, both for the ordinary and preferred shares. This would be paid out of the retained earnings in the period from 2005 until 2011. At the same price before the announcement, this would imply a DY of 3.7% for the ordinary shares, and 4.1% for the preferred shares.

The ex-date is set for 26 June 2023, while the payment date is set for 20 July 2023. Of course, the dividend proposal is subject to approval at the GSM, which will be held on 20 June 2023.

Below we provide you with a historical overview of Adris’ dividends per share and dividend yields.

Adris Grupa dividend per share (EUR*, left) and dividend yield (%, right) (2013 – 2023)

Source: Adris Grupa, InterCapital Research

*Converted using CNB’s EUR/HRK exchange rate for the periods in question

At the share price before the announcement, the DY would amount to 1.17%. The ex-date is set for 11 May 2023.

Yesterday, One United Properties OGSM and EGSM were held. At the OGSM meeting, the dividend proposal has been approved. According to the proposal, RON 37m shall be paid out in the form of dividends, which on a DPS basis would imply a gross dividend of RON 0.01 DPS. This would also mean that the payout ratio stood at 7.4%.

This is in line with the Company’s policy of paying out dividends on a semi-annual basis, the first tranche being approved after the OGSM meeting in September, and the 2^nd tranche being approved after April’s OGSM meeting. As such, this dividend payment represents the 2^nd tranche, as both the dividends are distributed from the FY 2022 net profit.

Furthermore, the ex-date is set for 11 May 2023, while the payment date is set for 30 May 2023.

Below we provide you with a historical overview of the Company’s dividends per share and dividend yields.

One United Properties dividend per share (RON) and dividend yield (%) (2021 – 2023)

Source: One United Properties, InterCapital Research

Here you can find the dates for the upcoming events of the regional companies.

Due to the nature of these events, they are subject to change (might be postponed or canceled).