In addition to the increase in profit, banking sector recovery resulted in the increase in profitability indicators so the return on assets grew from 0.6% to 1.2%, while the return on equity went up from 4.4% to 8.7%.
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 capitalisation. At the end of 2021, all credit institutions boasted total capital ratios exceeding the minimum 8%, while the total capital ratio of the banking system reached 25.6%.
Credit institutions’ liquidity measured by the liquidity coverage ratio remained high, totalling 202.5% at the end of December 2021. All credit institutions met the prescribed minimum liquidity requirements.
According to unaudited preliminary data, total assets of credit institutions increased by HRK 38.4 billion from 2020 (8.3%) and reached HRK 500.8 billion. Assets increased in most credit institutions.
At the end of last year, 20 banks operated in Croatia, employing 18,200 people.
(€1 = HRK 7.5)
