The HPB's core capital currently amounts to HRK 966.6 million and its capital adequacy is down to below the regulatory minimum of 8%, due to the central bank's demands for additional provisioning. The HPB's capital adequacy is now at 6.65%.
The Croatian National Bank has asked the HPB to increase its capital adequacy to above 8%, no later than 30 June.
The state-owned HPB said that with the decision on increasing the core capital the bank's capital adequacy would exceed 9%, more than the regulatory minimum.
The HPB wrapped up the first quarter of 2015 with a twice as high net profit than the year before. The bank's net profit went up 83% reaching HRK 42.3 million. At the same time, the bank's operating profit rose by 6.3% to 74.7 million kuna.