OVERALL BUSINESS RESULTS OF FINANCIAL INSTITUTIONS NEGATIVE

ZAGREB, June 15 (Hina) - The overall business results of financial institutions in Croatia in 1998 were negative - with total losses amounting to US$138.3 million more than the overall profit, the Payment Operations Bureau reported. The Bureau's data were collected on the basis of annual reports of 61 operating Croatian banks, 34 savings banks and 233 other financial institutions. The overall profit in 1999 (post-tax) of financial institutions amounted to US$129.8 million, which is a negligible increase of 0.2 per cent compared to the year before. At the same time, losses increased by 79.6 per cent and amounted to about US$264 million. Fourteen banks recorded losses amounting to US$233 million, whereas eight savings banks recorded a loss of US$6 million. The largest part of the profit (65.6%), is concentrated in eight banks, of which three have been successfully financially rehabilitated, and the capital amount of the loss (83.7 per cent) is concentrated in five banks for which bankruptcy procedures have been suggested recently. The total income of banks, savings banks and other financial institutions amounts to US$2 billion, which is 26.5 per cent more than the year before. The income structure is dominated by income from interest (67.5%), which increased by 37 per cent. The total expenditure amounts to US$2.09 billion and is US$541 million higher than the 1997 expenditure. Interest expenditures account for 31.8 per cent in the expenditure structure. Most of these expenditures, 54.6 per cent, are directed towards citizens. (hina) jn rml