- Largest Croatian owned banking group that takes care of clients, shareholders, employees and community in the best possible manner.
- 600 retail clients and more than 8 thousand corporate clients, 53 branches and outlets, 8 retail regional centers and 11 corporate regional centers, almost 500 ATMs and almost 1 thousand postal offices,
- Assets over HRK 20B and capital HRK 1,9B*, ranked seventh by size in Croatia
- A successful capital increase process had been carried out in 2015 where private investors and the Government took part. This enabled the Bank to avoid rehabilitation procedure, cover legacy losses and ensure minimum regulatory capital adequacy rate as approved by the European Commission.
- In 2015 and 2016 the Bank was successfully restructured, reorganized and with improved HR base. On the results front, these were the best two years since the Bank's incorporation (HRK123M and HRK181M net profit in 2015 and 2016 respectively) with substantial improvement of market share, all above expectations.
- by 2016 year-end HPB reached 5,00% market share treshold, which assumes additional capital buffer of 1,5 pp, and other regulatory limits that impede further growth, utilization of economy of scale, and investments into know-how and new techologies. In order to neutralize higher capital requirements due to coming regulation, and to continue with development of operations based on combination of sustainable growth and profitability, HPB need HRK 600M of capital,
- Development plans will be met by rational cost & risk management. It assumes improvement of the existing network, usage of Hrvatska Pošta channel, investment in digital channels, offering services to Croatian diaspora, and subject to opportunities, acquisition of smaller banks.
Largest Croatian-owned banking group that takes care of clients, shareholders, employees and community in the best possible manner
• Development plans will be achieved by rational cost & risk management, by improving existing network (retail, SME and local government operations) investment in digital channels, utilizing Hrvatska Pošta channel, offering services to Croatian diaspora, and depending on opportunities – acquisition of smaller banks.
| GROWTH CAPACITY |
ECONOMY OF SCALE |
•
During
2015
and
2016
HPB
had
proven
that
through
organic
growth
it
can
achieve
growth
rates
on
declining
market,
and
had
managed
to
exceed
profitability
goals
on
the
market
characterized
by
fierce
competition |
•
a
portion
of
fixed
and
regulation
costs
in
relation
to
total
size
enables
larger
institutions
to
achieve
better
scale,
income
and
expenses.
Therefore,
depending
on
opportunities
and
conditions,
acquisition
of
smaller
banks
would
be
a
logical
business
decision. |
UNDERCAPITALIZED IN
COMPARISON WITH COMPETITORS |
PRESERVING EXISTING
INVESTMENT |
•
HPB
is
one
of
the
least
capitalizatied
banks |
•
taking
into
account
capitalization
on
the
limits, |
among large banks in Croatia, making recapitalization a necessity for further volume and profit growth
CURRENT AND FUTURE REGULATION
- SSR capital buffer by exceeding 5,00% market share limit, an additional capital buffer of 1,5 pp will be imposed on the Bank
- IFRS 9 losses on financial instruments will no longer be recognized on "incurred loss" basis, but on "expected loss" basis, which will additionaly burden the capital,
- Regulation (EU) 575/2013 with regard to Croatian sovereign debt in EUR
- MREL depending on liabilities structure, new solvency minimum will be imposed on the banks
- Other unforseen regulations will come into force in 2018 and coming years
Capital adequacy ratio – HPB and credit sector
Analysis: HPB
Own funds and CAR – HPB and TOP4 banks in Croatia + OTP
HPB plc Source: Pokazatelji poslovanja kreditnih institucija, www.hnb.hr
HPB – SUSTAINABLE GROWTH AND PROFITABILTY Analysis: HPB