Business News

Abanka Generates EUR 15m Loss in First Half of 2011

Ljubljana, 22 July (STA) - Slovenia's third largest bank, Abanka Vipa, generated a net loss of EUR 15.1m, mainly due to write-downs and provisions. In the same period last year, the Abanka made a net profit of EUR 9.7m, the bank said on the website of the Ljubljana Stock Exchange on Friday.

Due to the difficult economic situation, resulting in an increase in the exposure to insolvent companies, Abanka Vipa made over EUR 46m of impairments and provisions, which is more than double compared to the same period last year (EUR 19.5m).

Impairments and provisions excluded, the bank would have made a profit of EUR 27.2m.

Net interest revenues amounted to EUR 42.6m, which is up 11.8% year-on-year. Net revenues from commissions meanwhile increased by 1.9% year-on-year to EUR 15.6m.

Abanka's total assets shrank by 4.2% in the first six months of the year to some EUR 4.36bn, but the bank attributes this mainly to the decreasing of its dependence on loans taken on foreign markets.

Non-banking sector deposits in the bank increased by 3.7% to EUR 2.34bn. Moreover, despite lower total assets, crediting expanded by 0.2% to EUR 3.24bn.

According to Abanka's press release, the bank maintains relatively high liquidity reserves to reduce its dependence on foreign market sources and the bank's capital adequacy stands at 11.7%.

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