HPB Bundle
What is the history of HPB?
HPB has grown into a key player in Croatia's financial sector, showing strong resilience and strategic expansion. A major step was integrating Nova Hrvatska Banka in 2023, boosting its position.
Founded in October 1991, HPB began as Hrvatska Poštanska Banka d.d. in Zagreb, initially owned by the Croatian national postal service. Its aim was to carry on the tradition of postal savings banks, dating back to 1883, by offering accessible financial services nationwide through the postal network.
HPB is now the largest Croatian-owned bank and a top five bank by assets. By the end of 2024, its total assets reached 7.9 billion euros, capturing a record 9.4% market share. This growth is a testament to its strategic evolution, moving from its postal roots to becoming a significant financial institution. Understanding its trajectory, including tools like the HPB BCG Matrix, offers insight into its market positioning and future potential.
What is the HPB Founding Story?
The HPB company, a significant player in Croatia's financial sector, officially began its operations in October 1991. This establishment coincided with a period of considerable political and economic transformation within Croatia. The bank's genesis is closely tied to Hrvatska pošta (Croatian Post), which acted as its primary shareholder for the first decade.
The Founding Story of HPB
HPB company was established in October 1991, with Hrvatska pošta (Croatian Post) as its initial majority shareholder. The bank's foundation was built upon the long-standing tradition of postal savings banks, dating back to 1883.
- The primary objective was to offer universal banking services across Croatia.
- Leveraging the extensive network of the Croatian Post ensured accessibility, even in remote regions.
- The establishment was a state-backed initiative during Croatia's early years of independence.
- By 2001, ownership shifted, with the Government of Croatia becoming the majority stakeholder.
The initial business model for the HPB company was designed to provide universal banking services, drawing from the established infrastructure and trust associated with postal savings banks that had been serving the Croatian population since 1883. This approach aimed to ensure that financial services were accessible to all citizens, regardless of their geographical location, by utilizing the widespread reach of the Croatian Post. The HPB company's origins can be seen as a strategic move to bolster the national financial infrastructure during a critical period of state-building.
While the specific individuals who spearheaded the founding are not extensively documented, the bank's inception by the Croatian Post clearly signifies a state-driven effort to create a robust national banking institution. The initial capital infusion would have originated from the Croatian Post, reflecting its substantial ownership stake. Navigating the complexities of a newly independent nation and a developing market presented the HPB company with its early challenges. A significant transition occurred in 2001 when the Government of Croatia assumed majority ownership through state-owned funds. This ownership restructuring underscored the bank's pivotal role as a state-controlled financial entity, committed to serving both the general public and, importantly, small and medium-sized enterprises, a crucial segment for economic growth. Understanding this early phase is key to grasping the Competitors Landscape of HPB.
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What Drove the Early Growth of HPB?
The early phase of HPB's development was marked by a strong focus on expanding its operational footprint and broadening its range of financial services. A key strategy involved leveraging its association with Hrvatska pošta through the 'Bank in the Post' initiative, which significantly improved financial service accessibility across Croatia, especially in remote areas.
Expanding Reach Through 'Bank in the Post'
HPB strategically utilized its partnership with Hrvatska pošta to implement the 'Bank in the Post' project. This initiative was instrumental in bringing financial services to even the most isolated communities, thereby enhancing customer acquisition and market penetration in its initial growth stages.
Strategic Mergers and Acquisitions
The bank's growth trajectory was significantly shaped by key mergers and acquisitions. In 2019, HPB successfully merged Jadranska banka and HPB-Stambena štedionica. A major expansion occurred in March 2022 with the acquisition of Sberbank's Croatian subsidiary for 71 million kuna.
Integration of Nova Hrvatska Banka
The acquisition of Sberbank's Croatian subsidiary, renamed Nova Hrvatska Banka (NHB), marked a pivotal moment. The operational integration was completed by June 3, 2024, following the legal merger on July 3, 2023. This move substantially bolstered HPB's market standing and increased its total assets.
Market Position and Financial Performance
By the close of 2024, HPB's total assets reached 7.9 billion euros, representing a 12% increase year-over-year, with its market share growing to a record 9.4%. This performance places HPB among Croatia's top five banks, driven by a commitment to innovation and digital advancements, as highlighted by the Mission, Vision & Core Values of HPB.
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What are the key Milestones in HPB history?
The HPB company has marked its history with significant achievements, including being recognized as a Significant Institution by European Banking Supervision in 2020 and receiving the 'Golden Kuna' Award for the most successful bank in Croatia in 2023. These accolades highlight its strong performance and strategic positioning within the financial sector.
| Year | Milestone |
|---|---|
| 2020 | Designated as a Significant Institution under European Banking Supervision, leading to direct supervision by the European Central Bank. |
| 2019 | Awarded as the best commercial bank of the year in Croatia by International Banker. |
| 2023 | Received the 'Golden Kuna' Award for the most successful bank in Croatia. |
| 2022 | Acquired Sberbank's Croatian subsidiary, significantly expanding its market share and asset base. |
Technological innovation is a cornerstone of the HPB company's strategy, focusing on digital transformation and developing advanced solutions for the domestic market. This commitment is evident in the continuous enhancement of its internet banking services and its proactive engagement with emerging fintech trends.
Digital Banking Enhancement
In December 2014, a new functionality for HPB Invest was integrated into the internet banking application for businesses, streamlining operations related to investment funds.
Fintech Collaboration
In May 2025, a partnership was formed with the Zagreb Innovation Centre (ZICER) and the Faculty of Economics at the University of Zagreb to foster innovation and develop new fintech solutions.
Banking Fintech Hackathon
As part of its innovation drive, the bank organized a banking Fintech Hackathon aimed at discovering novel solutions for process improvement and service modernization.
The HPB company has navigated significant challenges, including market volatility and competitive pressures, demonstrating resilience and adaptability. Its strategic acquisition of Sberbank's Croatian subsidiary in March 2022 was a direct response to market stabilization needs, which ultimately bolstered its market position.
Market Stabilization Acquisition
The acquisition of Sberbank's Croatian subsidiary in March 2022 was a strategic move to ensure financial system stability, enhancing the bank's asset base and market presence.
Operational Resilience
Despite a slight decrease in net profit to 73.6 million euros in 2024, the bank's operational profit saw a substantial increase of 21.9% to 111.8 million euros, reflecting strong operational performance.
Asset Quality Improvement
The bank achieved a historical low non-performing loan (NPL) ratio of 3% by the end of 2024, underscoring its robust asset quality management and adherence to sound lending practices. Understanding the Marketing Strategy of HPB can provide further context on its market approach.
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What is the Timeline of Key Events for HPB?
The HPB company history is marked by significant growth and strategic acquisitions, evolving from its founding in 1991 to becoming a major player in the Croatian financial sector. This evolution reflects a commitment to expansion and modernization, as detailed in the Brief History of HPB.
| Year | Key Event |
|---|---|
| 1991 | Hrvatska Poštanska Banka (HPB) was founded by Hrvatska pošta in Zagreb. |
| 2001 | The Government of Croatia became the majority owner of HPB. |
| 2003 | HPB opened its first branch in Split, initiating rapid network expansion. |
| 2014 | New functionality for HPB Invest was introduced to HPB Internet banking for businesses. |
| 2015 | The bank underwent recapitalization, with predominantly private shareholders participating. |
| 2019 | HPB was recognized as the best commercial bank of the year in Croatia by the International Banker and completed the merger of Jadranska banka and HPB-Stambena štedionica. |
| 2020 | HPB was designated as a Significant Institution under European Banking Supervision and is directly supervised by the European Central Bank. |
| 2021 | Marko Badurina was appointed President of the HPB Management Board. |
| 2022 | HPB acquired Sberbank's Croatian subsidiary for €9.4 million, renaming it Nova Hrvatska Banka. |
| 2023 | HPB completed the legal merger-by-acquisition of Nova Hrvatska Banka. |
| 2024 | HPB successfully completed the operational integration of Nova Hrvatska Banka and its total assets reached 7.9 billion euros, with its market share growing to a record 9.4%. |
| 2025 | HPB reported a net profit of 73.6 million euros for 2024, with operational profit increasing to 111.8 million euros, and organized a banking Fintech Hackathon. |
Strategic Growth and Market Position
HPB is focused on continuing its strategic growth and profitability. The bank aims for further strengthening of its market position through innovation and intensified digital enhancements.
Digital Transformation and Innovation
A key aspect of their future roadmap is the focus on digital transformation and innovative solutions. HPB is actively involved in stimulating the domestic fintech ecosystem through partnerships.
Investment in Key Areas
Leadership statements indicate a commitment to investing in client relations and employee expertise. These investments are considered crucial for future success and maintaining a competitive advantage.
Vision for the Future
The bank's forward-looking strategy ties back to its founding vision. HPB aims to be a modern, accessible, and highly efficient bank that contributes to the economic development of Croatia.
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