In the first half of 2022, assets of lenders totaled 525.1 billion kuna (€69.9 billion), or 4.8 percent up from December 2021. During the first six months of 2022 banks generated a total profit of 3.1 billion kuna (€413 million), state news agency Hina said on Tuesday, citing publicly available data released by the central bank HNB.

An increase of 4.4 percent was registered in total loans, and a decrease in non-performing loans (NPL) of 8 percent, which resulted in a further decrease in the share of NPL’s in total loans, from 4.3 percent at the end of 2021 to 3.8 percent in H1 2022.

The lenders’ return on assets (ROA) was 1.2 percent, unchanged from the end of 2021, while return on equity (ROE) increased from 8.8 percent to 9.5 percent.

Although the key indicators of the banking system’s capitalization in H1 still indicate high levels, the rate of the total capital of the banking system decreased slightly compared to the end of 2021, from 25.9 percent to 25 percent.

The central bank also added that two housing savings banks – PBZ Stambena Stedionica, and Raiffeisen Stambena Stedionica – have merged back into their parent companies, PBZ and Raiffeisenbank banks, so that the number of lenders on the Croatian market has now dropped to 21.

(€1 = 7.51 kuna)