Business News


NKBM Incurs EUR 100M Net Loss in Nine Months

Maribor, 25 October (STA) - Slovenia's no. 2 bank, NKBM, incurred a net loss of EUR 100.3m in the first nine months of the year, which compares to EUR 4.4m in net loss in the same period of 2011. The bank attributes this to provisions and impairments stemming from credit risks.

Operating profit before provisions and write-downs stood at EUR 30.4m, while it topped EUR 63.7m in the same period last year.

According to the bank's management, efforts to clean up the bank's loan portfolio will continue along with efforts for the strengthening of capital adequacy and restructuring.

The management plans to consolidate the credit portfolio in the next two years.

"We expect to post profit before provisions and impairments again at the end of the year, which will again send a positive signal to all stakeholders that the bank will operate successfully in the future," CEO Aleš Hauc said after today's session of the supervisory board.

The bank's total assets amounted to EUR 4.6bn, down 4.9% from the 2011 year-end. At the end of August, the bank's market share by total assets was 9.8%, the same as at the end of 2011.

In net loans and advances, the bank's market share decreased by 0.4 percentage points to stand at 9.7% at the end of September. The bank said this was due to a drop in demand, which is a results of the crisis.

The bank meanwhile retained its share in deposits from customers, which stood at 12.5%.

At the end of September, NKBM's total equity was at EUR 283.6m, down 24.1% from the end of 2011, primarily due to the loss incurred in the period from January to September. The bank's total capital adequacy ratio was 8.79% at the end of September.

Chief supervisor Peter Kukovica said the bank planned to reach 9% capital adequacy by the end of the year to strengthen its position on the capital and financial markets.

You might be also interested in:

GET IN TOUCH

We are here to help you.