SPLITSKA BANK AND HVB CROATIA TO BE MERGED UNTIL JULY

SPLIT, Jan 28 (Hina) - The process of the merger of Splitska Bank and HVB Croatia bank - both owned by Bank Austria Creditanstalt - is underway, and as of 1 July this year, the two financial institutions will operate as one bank which will be called Splitska Bank. #L# Upon the merger, it will be the third largest bank in Croatia with assets worth 15.2 billion kuna and a network of 81 branch offices. As of 1 July, the new bank will have a new management, the chairman of the supervisory board of Splitska Bank and HVB Croatia, Antun Knett, said at a news conference in Split on Tuesday. After the merger, the bank is planning to expanded its network in northern Croatia and attract 150,000 new clients by the end of 2005. Bank Austria Creditanstalt is a part of the HVB Group, the fifth largest bank group in Europe. Bank Austria Creditanstalt in this group is entrusted with the task to deal with the market of central and eastern Europe where the HVB Group has 900 branch offices in 15 countries, Knett said adding that this was the biggest network in the region. According to preliminary figures, Splitska Bank and HVB Croatia realised an increased profit in 2002. The former made a pre-tax profit of 188.5 million kuna, while the latter had a pre-tax profit of 54.4 million. (1EUR = 7.5 kuna) (hina) ms