PBZ AMONG CROATIA'S LEADING FINANCIAL INSTITUTIONS

( Editorial: --> 4569 ) ZAGREB, Oct 1 (Hina) - Privredna banka Zagreb (PBZ) is one of Croatia's leading financial institutions, ranked among the 10 largest banks in central and eastern Europe, the president of the bank's board of directors Bozo Prka told Thursday's Croatian Government session. Prka spoke as part of his report on the performance of banks that have been included in the Government-sponsored rehabilitation programme (including PBZ, Rijecka banka, Splitska banka and Dubrovacka banka). After a three-year negative period, PBZ ended 1997 with an annual net profit of 28 million kuna (about US$4.5 million) and a capital base of 1.66 billion kuna (about $268.2 million). Measured by its current assets of 16 billion kuna (about $2.6 billion), Privredna banka is the second largest Croatian bank, and through its capital of 1.7 billion kuna (about $274.6 million) it is on the very top. The bank commands 30 per cent of the Croatian banking market. Privredna banka is presently carrying out a restructuring plan in cooperation with foreign consultants. The plan hinges on limiting credit and risk exposure in the area of large business and on strengthening loan activities in the areas of small and medium sized companies and physical entities. During the first two quarters of 1998 PBZ pursued conservative business policies and made a gross profit of 50 million kuna (about $8.1 million), Prka said, describing the banks' performance as good and the bank as safe, solvent and moderately profitable. As the result of the rehabilitation and restructuring process, Rijecka banka has met all the conditions and standards of the Croatian National Bank regarding loan and monetary policies, the president of the bank's board of directors Ivan Stokic said as part of his report on performance and rehabilitation process in four Croatian banks - Privredna, Splitska, Dubrovacka and Rijecka. Before the launching of the rehabilitation process the Rijeka- based bank was on the average 91 million kuna (about $14.7 million) in the red. As the result of the process it has been since performing with a positive balance of about 20 million kuna (about $3.2 million). Currently the bank is not relying on secondary financial resources. Rijecka banka has also managed to restore the confidence of physical entities, who now account for 50 per cent of the bank's resources. The bank's assets have gone up by 41 per cent, to about 5.5 million kuna (about $888,530) and are now one of the highest in Croatia. (Hina) jn mro /mbr 011946 MET oct 98