Zagrebačka banka

Zagrebačka banka, established in 1914 and Croatia’s leading bank measured by product quality and innovative technology, became a member of UniCredit Group in March 2002. The bank was transferred to Bank Austria Creditanstalt in the first quarter of 2007 as part of the organisational changes in UniCredit Group.

As Croatia’s largest bank, Zagrebačka banka serves over 1 million private customers and more than 70,000 business customers. The bank’s leading position is reflected in its market shares. As a percentage of total assets and loans, the bank’s market share is 23.5%; as a percentage of the deposit base, 25.7%. One of the bank’s strengths is building society business where Zagrebačka banka maintains its leading role with a market share of 33%. Zagrebačka banka’s product range is offered through 127 branches in Croatia as well as alternative sales channels such as electronic banking, telephone and SMS banking.

In 2006 Zagrebačka banka Group recorded an operating profit of HRK 2,679 m, net profit for the year was HRK 1,113 m. Net fee and commission income increased by 16% primarily due to the success recorded in offering service packages and in credit card and domestic payments business.

The Group’s total assets rose by 11% to HRK 73.4 bn (year-end 2006); the volume of loans increased by 17% to HRK 43.8 bn, with growth mainly resulting from building society loans and loans to private customers in the retail segment as well as investment finance and working capital finance in the corporate segment.

The Group’s deposit base rose by 10% year-on-year to HRK 47.64 bn.

Retail customers:

Private customer deposits increased by 9% or HRK 2.6 bn in 2006. New loan products in the housing sector increased by HRK 3.7 bn (+44% compared with 2005). Loans to private customers were extended in the amount of HRK 2.1 bn, mainly for the acquisition of motor vehicles. Placements with business customers exceeded HRK 2 bn in 2006. At the same time the bank carried out major technological investments to improve transaction processing (e.g. self-service machines, 24/7 zones for corporate customers) and in electronic banking (speed and flexibility).

The bank successfully participated in the Croatian government’s subsidised financing programmes, extended credit lines to the Croatian Bank for Reconstruction and Development (HBOR) and issued guarantees to the Croatian Small Business Agency (HAMAG) to support projects of small businesses.

Corporate customers:

In 2006, Zagrebačka banka further extended its market leadership in business with large (multinational) corporate customers. The bank participated successfully in major loan and capital market transactions, particularly in the public sector (infrastructure projects, railways and shipyards). In its market leader role, whether in consortia, as a broker or as an issuing bank, the bank participated in issues totalling over HRK 7 bn. The deposit base in the corporates segment increased by HRK 780 m or 12% year-on-year, loans extended to this segment rose by HRK 389 m or 3.8%. Total placements with medium-sized businesses were up by 20% to HRK 8 bn while deposits grew by 16% or HRK 4 bn.

Outlook:

In 2007 the bank plans to maintain its strong current position and to achieve improvements in certain areas, e.g. cash management products, card business, in special services to supraregional customers through its European Desk, in loans to private customers and in investment banking.