In the first three quarters of 2022, total assets of credit institutions increased by HRK 50.6bn (10.1%) and stood at HRK 551.4bn.
The increase in total loans and advances of 9.0% and a decrease in non-performing loans (NPLs) of 17.1% resulted in a further fall in the share of NPLs in total loans – from 4.3% at the end of 2021 to 3.3% at the end of September 2022. The share of NPLs fell in both the portfolio of loans to non-financial corporations (from 9.9% to 6.5%) and in the portfolio of loans to households (from 6.6% to 5.5%).
The operation of credit institutions in the first three quarters of 2022 generated HRK 5.0bn in profit. The return on assets (ROA) was 1.3%, having slightly increased from 1.2% at the end of 2021, while return on equity (ROE) rose from 8.8% to 10.2%.
The key indicators of banking system capitalisation remained high in the first three quarters of 2022. The total capital ratio of the banking system edged down from 25.9% at the end of 2021 to 24.0%. All credit institutions boasted total capital ratios in excess of the minimum prescribed of 8%.
Credit institutions' liquidity measured by the liquidity coverage ratio (LCR) remained high. At the end of September 2022, all credit institutions met the prescribed minimum liquidity requirements, and the average LCR stood at 198.8%.