ZAGREB, 6 June (Hina) – Credit institutions in Croatia (19 banks and one housing savings bank) recorded a net profit of €375 million in the first quarter of this year, which is 9.4% less than in the same period of 2024, according to data from the Croatian National Bank (HNB).
As a result, profitability indicators have declined. The return on assets (ROA) stood at 1.8%, while the return on equity (ROE) was 15.4%. A year earlier, ROA was 2.12% and ROE 18.07%.
In Q1 2025, the total assets of credit institutions decreased by 0.6% compared to the end of 2024, to €83.7 billion, with most institutions experiencing a decline.
Total loans and advances (gross) dropped by 4%, mainly due to a decline in highly liquid assets (balances with the central bank and other demand deposits). However, lending to the two most important institutional sectors continued: loans to non-financial corporations increased by 5%, and household loans rose by 2.8%.
The total amount of non-performing loans (NPLs) remained unchanged from the end of 2024, but their share in total loans edged up from 2.4% at the end of 2024 to 2.5% at the end of Q1 2025. The central bank attributes this increase to the overall decline in loans and advances. The NPL ratio for corporate and household loans continued to fall, standing at 4.3% and 3.6%, respectively.
The banking sector’s liquidity, measured by the liquidity coverage ratio (LCR), remains high, the HNB emphasised. At the end of Q1 2025, all credit institutions met the required minimum LCR of 100%, with the average LCR at 222.2%.
