ZAGREB, July 4 (Reuters) - Croatia’s Hrvatska Postanska Banka (HPB) has acquired smaller rival Jadranska Banka, which operates in the tourist areas of southern Croatia, HPB said on Wednesday.
HPB, majority owned by the state, control around 5 percent of the local market. Jadranska Banka, which was saved from bankruptcy by the state, will add another 0.42 percent of market share.
The company added that it aims to recapitalize Jadranska Banka to the tune of 110 million kunas ($17.33 million).
More than 90 percent of Croatia’s banking sector is owned by foreign lenders from other European Union countries including Italy, Austria and Hungary.
HPB, 74.5 percent owned by the state, of the stock, reported a first-quarter net profit of 66.2 million kuna, up from 4.9 million kuna a year before.
HPB plans a capital boost by private and institutional investors, but there is no timetable yet. The state plans keep control of the majority of the stock and earlier privatisation plans have been shelved.
$1 = 6.3456 kuna Reporting by Igor Ilic