Business News

Abanka in the Black After Six Months

Ljubljana, 12 August (STA) - Abanka, Slovenia's no. 3 bank which was nationalised and recapitalised last December, posted a group net profit of EUR 547,000 in the first half of 2014 after still recording a EUR 19.53m loss in the same period last year.

The core bank saw a net profit of EUR 1.87m, which compares to a EUR 17.44m loss in the first half of 2013, the unaudited results published on Tuesday show.

Provisions and impairments in the group decreased by 48% year-on-year to EUR 20.41m, while operating profit was up 26% to EUR 21.53m.

The bank pointed out it had increased gross revenues by 5% to EUR 47.03m and reduced operating costs by around 8% to EUR 47.03m.

Group net interest revenue was down by almost 7%, while net non-interest revenue jumped by 37%.

Group total assets dropped 11% to slightly over EUR 2.7bn as deposits dropped by almost 3% to EUR 1.84bn. While deposits by companies fell by 11% to EUR 703.21m, household deposits rose by 3.5% to EUR 1.14bn. Outstanding loans to non-banking customers were down by about 7% to just under EUR 1.7bn.

An additional reduction of Abanka's total assets is being announced following a nod from the European Commission to state measures for stability, which is unofficially expected in the coming days.

It will be followed by the second part of the recapitalisaton - EUR 348m was pumped into the bank by the state in December while another EUR 243m has been earmarked.

Also planned is a transfer of around EUR 1bn of bad claims to the bad bank at a transaction value of slightly under EUR 600m.

Abanka's total capital ratio stands at 9.18%, which is 0.29 percentage points lower than at the end of 2013. It is expected to rise significantly following the mentioned steps.

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