Croatia's State-Owned Bank Posts €36 Million Profit as Lending Continues to Grow - EUROPE SAYS
Croatia’s largest state-owned bank, and the fifth largest in the country in terms of assets, has delivered another strong set of financial results, posting a net profit of €36. 2 million in the first six. . .
Croatia’s largest state-owned bank, and the fifth largest in the country in terms of assets, has delivered another strong set of financial results, posting a net profit of €36. 2 million in the first six months of 2026 while continuing to expand its lending and strengthen its position in international financial markets. The half-year figures released by Hrvatska poštanska banka or Croatian Postal Bank (HPB) show the bank’s net profit increased by 0. 4 percent compared with the same period last year, demonstrating resilience despite higher operating costs and continued investment in its future. The bank generated €101. 2 million in operating income, up 4. 2 percent year-on-year, driven by stronger lending activity and increased investment in securities. Net interest income, the backbone of the bank’s earnings, rose to €80. 3 million, an increase of 3. 6 percent, while income from fees and commissions climbed to €19 million, reflecting higher levels of customer activity. Investing for the FutureThe improved revenue came despite a significant rise in operating expenses. HPB’s costs increased by 11 percent to €58. 8 million, largely due to higher staff costs, ongoing digital transformation projects and inflationary pressures. Employee expenses alone rose by more than 12 percent, reaching €31. 7 million during the first half of the year, as the bank continued investing in its workforce and long-term growth strategy. Although operating profit slipped slightly to €42. 3 million, improved recoveries on non-performing loans helped offset the decline, allowing the bank to maintain overall profitability. International ExpansionHPB Chief Executive Marko Badurina described the results as evidence of the bank’s resilience during a period of strategic investment. He said higher revenues had successfully compensated for increased spending on employees and digitalisation while the bank continued expanding its lending portfolio and improving the quality of its loan book. The CEO also highlighted one of the bank’s biggest achievements this year, the successful issuance of its first international bond worth €150 million, marking HPB’s debut on international capital markets and strengthening its funding base. Looking ahead, Badurina said the remainder of 2026 will focus on reinforcing HPB’s market position, while the ongoing acquisition of Croatia Banka is expected to provide another important step in the bank’s long-term growth strategy. The wider HPB Group, which also includes HPB Invest and HPB-Real Estate, reported a combined net profit of €36. 4 million for the first half of the year. Tags:croatiaCroatia Banka acquisitionCroatia bankingCroatia economyCroatian banksCroatian financeHPBHPB 2026HPB financial resultsHPB GroupHPB profithrvatskaHrvatska poštanska bankainternational bondMarko Badurinastate-owned bank CroatiavijestiZagreb Stock Exchange