Croatian lenders earned a 5.6 billion kuna (€750 million) profit in 2021, a 108.8 percent increase from 2020, the central bank HNB said on Tuesday, citing un-audited preliminary data.

In addition to the increase in profit, the banking sector recovery resulted in the increase in profitability indicators so the return on assets grew from 0.6 percent to 1.2 percent, while the return on equity went up from 4.4 percent to 8.7 percent.

The effects of retained profit and targeted regulatory adjustments related to the pandemic in 2021 continue to be mirrored in the very high values of key indicators of banking system capitalization. At the end of 2021, all lenders boasted total capital ratios exceeding the minimum 8 percent, while the total capital ratio of the banking system reached 25.6 percent.

Credit institutions’ liquidity measured by the liquidity coverage ratio remained high, totaling 202.5 percent at the end of December 2021. All credit institutions met the prescribed minimum liquidity requirements. According to un-audited preliminary data, total assets of credit institutions increased by 38.4 billion kuna from 2020 (8.3 percent) and reached 500.8 billion kuna. Assets increased in most credit institutions.

At the end of last year, a total of 20 banks operated in Croatia, employing 18,200 people.

(€1 = 7.52 kuna)