Maribor, 04 August (STA) - Slovenia's second largest bank, NKBM, injected in June EUR 5m in Credy bank, a small Serbian bank it acquired in March 2010. NKBM is pulling extensive measures aimed at restructuring Credy bank, putting it back on its feet and transferring to it the business standards of the parent bank, NKBM said on Thursday.
After acquiring a 55.10% stake in Credy bank in March 2010 through a EUR 10m capital injection, NKBM invested another EUR 10m in the Serbian bank in November 2010. NKBM has thus injected Credy bank with a total of EUR 25m and holds a 76.6% share.
NKBM says in its press release that positive results of the measures have already started to show, as Credy bank climbed out of the red in the first half of 2011.
According to Serbian press agency Beta, Credy generated a profit of DIN 3m (some EUR 29,000) in the first quarter of the year and held 0.45% of the Serbian banking market at the end of March with total assets of DIN 11bn (some EUR 108m).
The press release further reads that NKBM plans to continue the restructuring of Credy bank and focusing on the rationalisation of the labour force, work processes and the network of offices, and development of new products.
The bank is also upgrading its IT equipment and transferring NKBM's operating standards to the Serbian bank. It is working on increasing the number of its corporate clients and trying to provide favourable financial services for its existing Slovenian clients active in Serbia.
NKBM successfully passed this year's EU-wide stress test, exceeding the minimum threshold of 5% Core tier 1 capital by three percentage points. It generated a net profit of EUR 5.6m in the first half of the year.
The Slovenian bank meanwhile raised EUR 104m in a capital increase through a subscription of fresh shares that ran from 4 to 26 April.