The paper deals with the analysis of basic financial statements and financial indicators, theoretically and practically, on the example of Zagrebačka banka d.d. in order to obtain a more complete picture of the bank's operations. Financial reporting is of great importance for users of financial statements interested in analyzing the bank's performance. In this way, they can get important information that will affect the making of appropriate business decisions. The information obtained by the analysis can also be used to improve the bank's operations. It is necessary to analyze all the basic financial statements such as the balance sheet, the statement of profit and loss account, the statement of cash flow, the statement of changes in capital and the notes to the financial statements because they form a single unit. By implementing the basic instruments and procedures of analysis of financial statements, such as the procedure of horizontal and vertical analysis and the application of financial indicators, it is possible to understand what the bank's business is compared to previous periods, what is the structure of these statements and whether the bank operates safely and successfully. The application of the above-mentioned instruments and procedures for the analysis of the basic financial statements on the example of Zagrebačka banka d.d. for period from 2019 to 2021, it is concluded that the bank recorded a continuous growth in assets, liabilities and capital; that it operates safely because the financial indicators of the relationship in the balance sheet have satisfactory benchmarks. Nevertheless, the bank does not operate successfully on all financial indicators in all three observed periods leading to only partial acceptance of the hypothesis. Profitability indicators due to the negative impact of the COVID-19 coronavirus and, as a result, a sharp decline in net profit have weak values in 2020. Based on the results of the research, it is concluded that due to negative developments in the market, the bank has lower interest income and they have the most share in the structure of total revenues. It should turn more towards increasing non-interest income, reduce dependence on interest income and thus increase profits.